Consumers with high deductible plans would have a lower bill if they'd paid in cash rather than using their insurance plan to cover the bill.

Tracking and fighting waste, fraud, and abuse in healthcare costs took an interesting turn.?

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The study conducted by professors at Johns Hopkins University after examining prices reported by 2,379 hospitals in the US confirms: insurance doesn’t guarantee companies and their employees the best deal.?

Turns out cash-paying patients often paid less than those using insurance. Yet, consumers and employers need to actively seek this information, emphasizing the importance of financial incentives.?

“On average, cash prices and commercial negotiated rates were 64% and 58% of the corresponding chargemaster prices for the same procedures at the same hospital and in the same service setting, respectively. Cash prices were lower than the median commercial negotiated rates in 47% of instances…” - is stated in the description.?

Insurance tools often show average costs, not the actual billed amount, which might not be helpful, according to “Health Affairs.” Real prices make hospitals and doctors more accountable.?

John Hopkins professor Ge Bai highlights the potential of price transparency but stresses the need for better incentives to encourage people to explore lower-cost services.?

Takeaways

• High deductible plans may not always result in the best deal for consumers and employees.
• Paying cash for healthcare services can often lead to lower bills compared to using insurance.
• Insurance companies negotiate discounts off the retail price set by healthcare providers, but cash pay prices are even lower.
• There is a need for price transparency and better incentives to encourage people to explore lower cost services.
• Better Source Benefits aims to drive pricing that is transparent, measurable, repeatable, and predictable.