As more costs are being passed on to the consumer, it has become even more important for consumers to understand and compare prices of health care services before receiving treatment.  Here is some advice that can save you real money.

Negotiate

Dr. Kathryn Stewart, Medical Director of Care Management at Mount Sinai Hospital in Chicago, believes patients should be more proactive about seeking the best prices for services.  In fact, Dr. Stewart suggests patients negotiate a payment arrangement with the provider before they have the service performed.  Dr. Stewart advises, “Patients can always negotiate the price before or after the service is received.  Don't just accept at face value to pay what the provider is charging.  Most hospitals would be glad to give a deep discount (up to 50% or more) if patients pay at the time of service. The discount is less if patients drag payments out over a long period.   Keep in mind that charges and payments have almost no relationship to each other and charges are a pie in the sky number that no one pays except for the self-pay patient, and that is only if they are not smart enough to negotiate a lower payment for themselves. Most important - after you have received the service you are not in a good negotiating position.  However, before you receive the service, you are in a better position to negotiate the price.”

Ask for the Medicare Rate

If you are uninsured, you really need to negotiate a better price.  Ask the provider what Medicare would reimburse them for this procedure.  Start with this price and see where you end up. 

Good luck.

"You can't drink that!" my wife reminded me as I mixed the fruit juice concentrate.  “You have the health screening tomorrow morning and you must fast for 12 hours."

My wife shops for healthcare and she found a great deal offered by the Village of Mount Prospect’s Human Services department and Resurrection Medical Center.  For $30, I receive blood tests including: complete lipid panel, complete metabolic panel and complete blood count.  For $20 more, I can receive a prostate screening.  The village also offers a free blood pressure test.

So this morning, feeling a little hungry and caffeine-deprived I arrived at the Village Hall for my screening.  After I paid with a personal check, I quickly walked through the stations which included blood pressure, blood draw, and even filling out a self-addressed envelope for my results.  I asked the lab technician how the prices could be so low when the same tests would cost $200-300 at a physician’s office.

“The hospital considers it a community service and breaks even by using it as a tax deduction,” she said.  “We do these screenings a couple times a month at village halls, churches, and senior centers.”

The last station was a table of bagels, donut holes, juice and coffee.  Say, this is a good deal.  My doctor never fed me breakfast!

-- posted by Pat Frisbie

I was a competitive runner for more than 25 years, and several years ago I started to experience a pain in my knee that just would not go away.  No matter how much ice, rest, and physical therapy – the pain was persistent.  I finally made an appointment to see a sports doctor.  After the doctor spent 10 minutes with me, he suggested I have an MRI on my knee – which is a very expensive test for someone that has to pay for the entire bill out of pocket.  I mentioned to the doctor that I had a high-deductible insurance plan and he gave me several diagnostic facilities to contact.  I called every single facility.  In fact, I even called my health plan provider.  I called diagnostic facilities in and near my neighborhood.  I learned that an MRI is an expensive test that can cost anywhere from $500 - $2500, depending on where I decide to go for the test.  And to make matters worse, not a single provider, or insurance carrier could tell me what my out of pocket cost would be for an MRI with my health current insurance plan.  I learned that my health insurance plan negotiated discounts with providers.  Some discounts were more substantial than others and this could make a big difference in MY PRICE.  Every health care provider and health insurance representative I talked to would not share this with information with me. This rude awakening was the beginning of a journey for me.  I realized first hand that consumers need easy access to meaningful tools to help them make informed decisions about where to find the “best value”.  To be honest, I was not shopping for a complicated surgical procedure; I was just looking to find the best price and quality for an MRI so I could find out why I am in so much pain when I run.  I did not want to be overcharged - I just wanted to pay a fair price.  Is that asking too much?

I think most consumers would be outraged if they knew the true cost of health care services.  There are so many different prices for the exact same service.  How are consumers expected to know the difference?  I learned about similar experiences from many other consumers that had similar stories of “the priceless MRI”, so I decided to do something about this problem.  Using the power of the internet, and taking advantage of social-networking, I decided to build a portal where consumers could share prices and personal recommendations on providers, with other consumers.  If enough consumers participate to share prices, consumers will end up creating a powerful tool to help make informed health care purchasing decisions.  Until the industry catches up, consumers are going to have to be creative and resourceful when researching providers and facilities to make the most out of their health care dollars.  I encourage you to check out the website, www.outofpocket.com.  Be sure to tell your family and friends about this project, and let me know what you think.  The best part about this initiative is that is benefits all consumers, including the insured and uninsured, without having to wait for legislation to pass, complicated programs to be initiated, or waiting for the country to decide how to reform our health care system.   

- Mona Lori

Several years ago I decided to switch to a high-deductible health insurance plan (HDHP) for myself and my family.  I pay 100% of my own health insurance premiums and one of the factors that influenced my decision to switch was how expensive my insurance premiums were getting even though I basically made no insurance claims over the past five years, other than annual check-ups.  After my accountant suggested I look into high-deductible plans, I calculated that I could save $7000 in premiums every year and use my HSA to help pay for my medical expenses.  With my HDHP I have become a cost-conscious consumer of health care services, and I shop around for the best value, just like I would shop around for a car or electronics.  The only problem is there are no Consumer Reports for health care where I can easily find the best value for health care services.  I have no meaningful tools to help me make informed choices about where to find the best value for routine health care services like MRIs, X-rays, vaccinations, mammograms, and office visits.  How do I avoid the overpriced providers with poor performance ratings?  Now that I pay out of pocket for these services (up to $5000), how do shop for value?  How do I find out what other patients think of a physician that is listed in my plans network?

-- posted by Moni Lori