Few patients are aware of the hidden variations in healthcare network “discount” prices. When we overpay for medical tests and procedures due to lack of price information normally available in any efficient marketplace, we experience higher out-of-pocket costs, drive up insurance premiums and increase the cost of healthcare for everyone. See the table below, a representative sample of hidden variations in healthcare “discount” prices.
It’s not just Boston, either. Extreme price variation is happening everywhere.
As a result of missing normal consumer information in the healthcare marketplace, premiums and employee out-of-pocket costs have greatly outpaced general inflation and employee wage increases dramatically resulting in a healthcare cost crisis. These costs are unrelated to quality of outcomes. Much of the highest quality care is actually available at the lowest costs.
Warren Buffett: “Medical costs are the tapeworm of American economic competitiveness.”