Giving consumers prices to shop for the best value for non-urgent medical services may only have a modest effect on reducing health spending, according to an analysis by the Health Care Cost Institute (HCCI).
HCCI’s report, “Spending on Shoppable Services in Health Care,” examined 2011 claims data for people under 65 with employer-sponsored health insurance. Researchers examined total spending on shoppable healthcare services, which are ones that can be scheduled in advance. Examples include flu shots, non-emergency hip or knee replacements, colonoscopies, urinalysis, and blood and strep tests.
Consumers hoping to use price shopping to lower their coinsurance and deductible payments could influence only about 65 percent of their out-of-pocket payments per year, HCCI said. Price shopping will generally have little effect on copayments since these are typically set amounts and will not vary, it added.
HCCI found more variation in inpatient services than outpatient, with prices varying more for non-shoppable inpatient services than shoppable ones.
Payers, employers and other stakeholders should focus on targeting spending more directly, HCCI said.
“Consumer shopping is important, but it should not be at the fore of delivery system design,” HCCI Executive Director David Newman said. “Since providers are setting the prices, it makes more sense to directly engage them and payers because they are in the best position to exert downward market pressure on prices.”
