The recent report “Price Transparency in U.S. Healthcare: A New Market” by research and advisory firm Aite Group released last Thursday establishes health care price transparency as a growing, new health care market. The move toward health care price transparency is expected to increase revenue for banks, merchant acquirers, clinicians and hospitals based on the growing consumer demand for greater transparency on health care costs. Supporting companies can expect to increase revenue to $1.9 billion by 2016. According to the study, the total market for price transparency products and services will increase from $540 million in 2012 to $3.09 billion by 2016, which is a compound annual growth rate of 55 percent from 2012 to 2016.
Increasing enrollment in high-deductible health plans (HDHPs) and consumer-directed health plans (CDHPs) will be a major influence in the move toward health care price transparency. However, the demand for greater price transparency is not exclusive to HDHP/CDHP consumers, as all consumers desire a balance in quality and cost. Although growing HDHP enrollment is not the only factor in the move toward health care consumerism as the purchases of insurance on the state insurance exchanges start next year.
Health care consumers’ desire to align the quality of care with the cost of receiving care paves the way toward health care price transparencies. Along with consumer desires, legislative changes through the Affordable Care Act have provided opportunities for health care entrants to create a new market by addressing sticker shock, clarifying confusing healthcare bills and helping both insured and uninsured choose providers.
According to 2015 FAIR Health survey estimates, half of U.S. consumers consider their out-of-pocket medical costs higher than they expected. A third of those surveyed felt that costs were much higher than anticipated.
Consumer-driven plans are pushing employees toward a new role in health care – from “My doctor knows best, and insurance will pay for it” to “Am I making the best choice for my health and my wallet?”
By engaging Millennials, health care sector leaders can plan a future when individual consumers can manage their own health insurance purchases, provider choices, benefits and expenditures simply and cost-effectively.
More than 14.1 million people nationwide have signed up for health insurance since enrollment under the Affordable Care Act opened in October 2013, and, in the same period, an additional 2.3 million young people have gained insurance through their parents’ health care coverage. Overall, the national uninsured rate is estimated
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