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Price Variation and Transparency

HealthLeaders magazine, March 13, 2014

Recent changes to healthcare benefits, including the opportunity for consumers to exercise more choice in selecting providers and treatments, have the potential to help reduce costs. Truven Health Analytics has found that reducing price variation for the 108 million Americans with employer-sponsored insurance could save the nation as much as $36 billion per year. Providing consumers with clear, comparative information on the cost of services is key to further engaging them in decision-making and, ultimately, reducing healthcare costs. The data in this report demonstrate what could be saved through price transparency, with specific research on price variation in colonoscopies, a service that research has shown is particularly prone to price variation.

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