As health care consumers, we've been programmed to assume we have no control over the price, so we don't ask about it. As a result, each year, Americans overspend on health care by millions. With a little bit of effort, you can save hundreds, if not thousands of dollars, and still get high quality care.
Many consumers are savvy about price shopping for big ticket items like houses and cars, and smaller items like household products, but medical pricing has not traditionally been considered something to haggle over.
Angie's List, the nation's premier provider of consumer reviews, including doctors, found in a
nationwide poll:
- 85 percent of respondents said health care providers should publish their prices;
- More than half (61 percent) would happily shop around if they only knew the prices providers charged
*1,015 Angie's List members took the online poll.
Many consumers overpay for health care for two reasons:
- Medical billing is too complicated to figure out.
- Consumers are so used to not having any control over price that we don't even ask about it.
Angie's List and Healthcare Blue Book launched a service designed to help patients shop around
for the best price before they even agree to treatment and incur those bills.
- Angie's List members can access Healthcare Blue Book's local pricing information on visits ranging from ordinary pediatrician visits to complicated surgeries.
- In addition to seeing the pricing, members get information on why the service costs what it does, approximate length of the procedure if surgery is involved, as well as cost saving and negotiating tips.
- Members can also print a price estimate agreement that details the acceptable price for cash-paying patients, in which the provider agrees to charge that fee in return for you paying at the time of service or within an agreed-to period.
Health care providers typically have standard fees, known as "billed amounts," or the sticker price. But they also negotiate with insurance companies to pay a fee, known as the "allowed amount," that is far less than the billed amounts but still considered as payment in full. This negotiated fee is what Healthcare Blue Book considers the fair price.
Why it's important to price check prices can vary by hundreds of dollars!
- In Washington, D.C., prices for an MRI of a knee at five imaging centers ranged from $400 to $1504. HcBB fair price: $912
- An abdominal MRI at three Atlanta imaging ranged from $1,190 to $2,543, if payment was cash. HcBB fair price: $836
- Cost for an MRI of the lumbar spine ranged from $500 to $2,661 at eight Chicago facilities.
HcBB fair price: $522
There's no need to be squeamish when it comes to asking about the price of a health care service. Avoid unpleasant surprises by following these Angie's List tips: - Get ALL the details. If your treatment is a surgical procedure, make sure to ask about pricing for all aspects of the care, including the surgeon, hospital, anesthesiologist, pathologist, or any other related fees.
- Know the specifics. Write down the name of the service and, if possible, ask your doctor for the billing, or CPT (Current Procedural Terminology), codes. The more specific you are, the easier it is to get an accurate price.
- Figure out the fair price. Before asking a provider, look up the medical service using the Healthcare Blue Book tool on AngiesList.com and write down the price so you can compare.
- Shop around. Health care providers typically charge a wide range of prices for the same procedure. Call several highly rated providers and ask to speak with an employee who can discuss pricing.
- Share your status. If you have insurance, tell your provider so you'll get the rate your insurance company has negotiated. If you're paying out-of-pocket, be sure to ask for the self-pay discount.
