Experts from our Business Intelligence team did a study of members' knowledge of health care costs. Below are the rather surprising results.
by Laura Bethke, Carol Foley, Robert Harris and Michelle Kittrell
Do people shop for health care? Findings from our Health Care Consumer Study show that the majority of respondents said they think they would compare provider quality and prices before undergoing a non-urgent health care procedure. But we also found that there is a difference between how people behave as consumers of health care and how they behave as consumers of durable goods. When it comes to shopping for health care, cost is considerably less important.
Participants in our survey were asked to select a non-urgent health care service they may potentially be in need of in the next five years and a durable consumer good of a similar price point. For each selection, they were asked what information, if any, they would want about the service or product, followed by a series of shopping-related questions.
Demand for Information
When asked about health care providers in the non-urgent-care category, seven in ten respondents said they wanted information on provider quality, cost of service, and general information about the provider.
But around nine in ten wanted cost and quality information when shopping for a similarly priced durable consumer good.
Shopping for Health Care
When it comes to health, most respondents follow the "doctor knows best" rule of thumb: Nine in ten said they would follow their physician's recommendation when intending to undergo a non-urgent health care procedure. However, the majority of respondents still said they would compare provider quality and prices. Seventy-seven percent of the respondents said they would compare provider quality, while six in ten indicated they would compare prices.
Again, the durable consumer goods market is very different, with at least 90 percent of respondents saying they would compare price and compare quality.
Consumer Savvy in Health Care
When we asked respondents how informed they were about provider charges for health care services, about four in ten described themselves as not informed; about the same number felt they were informed. How price-savvy were the respondents? We asked two questions: what a lab would charge for a standard blood panel, which is often taken as part of a routine physical exam, and what a pharmacy charges for a generic antibiotic prescription (e.g., amoxicillin).
Thirty-three percent of the respondents said they did not know how much a lab would charge for a standard blood panel. For those respondents who entered a dollar amount, most estimates were below the average charge, which was calculated to be $108.04, and half of the respondents mentioned a price that was $55 or less.
More than two in ten respondents said they did not know how much a pharmacy would charge for a generic antibiotic. For those respondents who entered a dollar amount, most estimates were below the average charge, which was calculated to be $34.72. Half of the respondents mentioned a price that was $10 or less.
What's Next for Health Care Consumers?
This study is only the beginning. Our goal is to continue to meet the information needs of our members. myRegence already offers members tools to find information on physicians in their area, and ways to view claims as they are processed. And we are actively working on providing even more information to help you manage your health care.