Priority Health Veers Toward Price Transparency

In a bid toward greater price transparency in healthcare, Grands Rapids-based Priority Health plans to publish specific healthcare costs and quality data by procedure, hospital and physician.

Officials said the data publication, which will occur in conjunction with the Healthcare Blue Book, is in response to higher costs for consumers. More than 300 different procedures will be priced out and the associated data published, officials said.

"Today nearly half of Priority Health members have a high deductible health plan, and the number of high deductible plans is growing dramatically statewide," said Michael P. Freed, president and CEO of Priority Health. "When individuals pay more out of their own pockets, they become more engaged in their healthcare decision making. We feel it's our role to improve the health and lives of our members by providing the information they need to make important health care decisions."

The new cost tool is expected to be available by summer and will be accessible via an Internet portal to all of Priority Health's 600,000 enrollees. It will contain a price range for highly utilized procedures such as knee arthroscopies. Currently, the price of such a procedure among Priority Health's provider network ranges between $1,751 and $6,087. The Healthcare Bluebook would help establish what is considered a “fair price” median, which would be about $2,100.

"This tool is going to lead to a lot of educational discussions in doctors' offices," said John Fox, M.D., associate vice president of Medical Affairs at Priority Health. "Patients will be asking about their best course of treatment and how much it will cost."