Transparent Prices Will Help Reduce Health Spending

Many skeptics of price transparency argue that price transparency tools have relatively low take-up and that most consumers have little incentive to seek out low-cost providers and services. Under the dominant health system structure, the skeptics are generally correct. Most studies show that few patients use transparency tools, and relatively small savings result system wide. However, consumers that do shop, can save a great deal of money. Those who used a New Hampshire price website prior to medical imaging visits saved 36 percent off the original cost, for example. This shows that policy changes to encourage greater consumerism can produce significant benefits to employers, employees, and patients—enhancing their ability to obtain greater value from their health spending.