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Cost Transparency

From , former About.com Guide

Updated December 30, 2009

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Definition:

Healthcare cost transparency is the ability of the patient to discover how much a particular medical service or treatment costs, preferably before receiving the service or treatment.

Cost transparency plays a key role in many proposed healthcare reform efforts. In our current system, patients experience great difficulty in determining the cost of care in advance of treatment. Prices for the same procedure often vary based on whether the patient is insured and (if applicable) who is insuring them. This is because different insurers have negotiated different rates with providers. The result is that the consumer often has no idea how much their care actually costs.

Some experts believe that if this cost information were readily available, patients would be better equipped to shop around for the best price for care, potentially saving thousands of dollars. Other experts believe that cost transparency could cause patients to forgo medically necessary care if it is too expensive to afford.

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