The price of standard medical procedures, such as MRIs and colonoscopies, can vary by hundreds – if not thousands – of dollars. And since healthcare consumers are paying more in deductibles and out-of-pocket expenses, they’re interested in striking a balance between savings and quality. Of course, insurers have a stake in that decision, and price transparency has been a favorite subject of discussion in healthcare for at least the last few years.
In response, Priority Health, an insurer in Michigan, has not only launched its own price transparency app but it’s also rewarding members with $50 to $200 Visa gift cards for utilizing the app. To receive their cash incentives, members must use the app to select providers and complete procedures. Between January of this year when the app was released through July, Priority Health reports that 20,000 members conducted searches with its cost estimator and 11 percent of those earned rewards, according to a recent article in Crain’s Detroit Business (“Priority Health sweetens pot for members to use mobile cost estimator app”).
When asked if Priority Health has estimates on cost savings from using the app, Joan Budden, Priority Health’s chief marketing officer told Crain’s, “We think it is about break even at this point with reduction in costs. We feel we have more engaged consumers at this point. It is not just about the transparency tool… consumers earn money for being engaged in their care.”
In addition to linking to independent healthcare quality websites like HealthGrades, the insurer’s cost estimator calculates results based on members’ policy benefits and deductibles. Priority Health showcases how it works – and emphasizes its rewards program – in a video on its website: “Ready to earn money for being engaged in your healthcare?” A company press release explains,
“Priority Health members can access Cost Estimator through the Member Center through the Priority Health mobile app. Once a member opens Cost Estimator, they select the procedure and their preferred facility and doctor. The Cost Estimator will then calculate cost information based on the member’s specific health plan and provide quality of care information on the provider selected. And if the price is determined to be high, members are presented with more affordable options using different facility and provider combinations.”
Priority Health’s cost estimator app and rewards program are follow-ups to its “Healthcare Bluebook,” a tool that provides pricing and quality comparison information for consumers in Michigan.
Could this be the incentive customers need to engage with transparency tools? Will other insurers follow suit?