Health Plans Providing Detailed Cost Estimates of Doctor Visits

A new story in American Medical News reports that health insurers have replaced online tools that showed only rough guesses as to how much a doctor’s visit will cost with new ones that estimate specific dollar amounts for both overall and patient out-of-pocket costs. During the past year, several health plans have released new versions or made significant updates to their cost estimation tools. The newer tools show not just a negotiated price but also the anticipated cost to a patient based on his or her benefit plan, as well as how much of the deductible is met. The projection is accompanied by a disclaimer noting that the insurer can’t guarantee its accuracy, but insurers say their updated tools are far better than the old versions. Health plan executives say they hope the improved tools will mean consumer-directed health care meets its potential, encouraging patients to shop for the best care at the best price.

The article quotes February's NHLC Meeting participant, Castlight Health and reports that on May 1, the 4-year old company received a new round of $100 million in venture capital financing. An important player in the price transparency movement, Castlight Health provides solutions to employers to help use information to drive down health care costs.