Price Transparency Tool Increased Spending

The Journal of the American Medical Association recently published a study of the impact of price transparency tools on healthcare spending at two large companies. Here are some key findings from the report:

·         Spending among employees with a price transparency tool went from $2021 before the tool to $2233.

·         Among controls, mean outpatient spending changed from $1985 to $2138.

·         Being offered the tool was associated with a mean $59 increase in outpatient spending.

·         Out-of-pocket spending among those offered the tool was $507 in the year before and $555 the year after.

·         Being offered the transparency tool was associated with a $18 increase in out-of-pocket spending.

·         In the first 12 months, 10% of employees who were offered the tool used it at least once.

Source: JAMA, May 3, 2016