Looking under the rug – what insurers pay providers now public in Minnesota
For the first time in the U.S., a web site will show consumers what insurance companies pay on average for common medical procedures. That, according to an article in this morning’s Star Tribune, titled “Medical price shopping hits Web.” (Bad headline aside – medical price shopping has been around on the web for a couple of years – this is different).
The tool, found at www.mnhealthscores.org, was developed by the MN Community Measurement, “a collaborative of state health care providers that collected the data from insurance companies,” according to the story. More than 110 providers throughout Minnesota provided insurance reimbursement data on 103 medical procedures, and not surprisingly, there is a wide variety of costs. For example, the article leads off with the comparison of colonoscopies, which would cost $1,354 at Olmsted Medical Center in Rochester (not affiliated with the Mayo Clinic, btw), and $402 at Hennepin County Medical Center in Minneapolis.
Of course, it’s not until after the jump on page A10 that it is stated that these aren’t actually prices consumers will pay, but rather the average negotiated reimbursement that insurers pay providers. What patients would actually pay for those colonoscopies would depend on their insurer, plan and specific components such as copy, deductible, etc. Still, this is helpful information for someone like me, who has a high deductible plan for my kids. Or, who – as noted in previous posts – is battling a stubborn wart on his foot (“Removal of small wart: Olmsted Medical Center – $216; Broadway Medical Center, Alexandria, $130).
Information like this usually leads to more questions than answers, and this tool is no exception (my first attempt to use it this morning has me still waiting for the site to load procedures to compare). Why is Olmsted more expensive than Hennepin County Medical Center? Are there valid reasons, related to experience, convenience, quality of care, etc.? But there’s no doubt if this information becomes comprehensive (covering more providers and procedures) and is simple to use, it will be a useful tool for those shopping for care.
On a side note, our White House-seeking Governor, Tim Pawlenty, jumped on board fast, lauding the tool as an example of why we should have a “consumer-driven model, not a government-centric model.” The expressed hope is that transparency of costs at this level will help foster price competition among providers, driving down healthcare costs overall. (Political editorial alert: I’m growing tired of the old free-market mantra – “let the consumers run healthcare.” Sorry, but consumers for the most part don’t drive demand in healthcare, providers do, and that’s a bigger problem (i.e. fee-for-service). Frankly, unless we all receive our medical degrees, we’ll never have the expertise to be in the driver’s seat. But off my soapbox.)
Politics aside, what do you think of this new tool? Will it be a game changer, or just one more resource among dozens that, while seeking to help consumers, may end up causing more confusion than ever? Tell us what you think.