This week’s look at the cost savings predicted as a result of new 401(k) fee transparency requirements fits nicely with this piece of news:
UnitedHealthcare, the No. 3 provider of health insurance coverage in Arkansas, is rolling out this summer a new online tool called the Health Care Cost Estimator, which will allow its customers to directly compare the cost of treatment from provider to provider.
That’s right: Transparency in health care costs. Head-to-head comparisons of variation in the cost from one provider to another. That would be particularly useful to patients with high-deductible plans.
Greg Reidy of Brentwood, Tenn., CEO of United’s mid-South market, described the concept to Whispers last week. It’s tricky because there are confidentiality agreements in the contracts between providers and insurers, so the Health Care Cost Estimator will provide estimates of the cost to the patient, not the price that the insurance company will pay.
But patients will, for the first time, be able to do some comparison shopping on price on the Internet. Do you suppose that might have the same effect on health care costs that fee transparency is expected to have on 401(k) costs?
The new tool will not be available in all markets at the same time, and the roll-out date for Arkansas was not immediately available. We’ll keep you posted.
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