Patients Receive Little Pricing Data

A new survey by TransUnion Healthcare concludes that the majority of Americans are confused by the bills they receive from their medical providers, and that few receive any meaningful cost estimates in advance.

Transunion surveyed 7,407 representative residents of all 50 states and the District of Columbia. About half of those surveyed had coverage from employer-sponsored health plans; 12% purchased individual coverage; 18% were enrolled in Medicare; 9% were enrolled in Medicaid; and 4% are enrolled in coverage provided by either the military or the Veterans Affairs Administration.

Those surveyed generally hungered for as much financial transparency as possible: 80% say that cost estimates would be helpful to them; 63% want to know the full cost of their care, and 37% want to know how much they are going to pay out of their own pockets. Receiving a cost estimate was nearly as important to those surveyed as receiving prompt results of medical tests and an accurate diagnosis of their specific medical condition.

  Yet 54% of the respondents say they are confused by the bills they receive from providers, and 62% are surprised by the out-of-pocket costs for which they are responsible. However, only 25% are offered any cost estimates from their providers prior to undergoing care.

The issue has become widely debated as a matter of policy in recwnt particularly given the cost-shifting payers have made over to patients over the past 15 years and the fact that price transparency in healthcare is only occurring in fits and starts.

"Today's cost-aware consumer has a greater expectation that providers will offer upfront cost estimates and timely and accurate post-treatment bills. With consumers placing more emphasis on billing and payment when evaluating quality of care, it's imperative that providers have the technology and processes to meet this consumer demand," said Dave Wojczynski, a TransUnion Healthcare senior vice president.

California performed only marginally better than the nation as a whole: 57% of state residents said they were surprised by the amount they had to pay, and 28% said they had received an upfront cost estimate from their providers. Utah had the best rate among the states of giving patients an upfront cost estimate: Just 39%.