New Hampshire consumers saved millions using health transparency website

New Hampshire was the first state in the nation to create a health cost website where consumers can compare prices on medical services. The state’s HealthCost website was created by the New Hampshire Insurance Department in 2007. The site uses paid claims data collected from New Hampshire's health insurers to show patients — insured and uninsured — an estimated price for a procedure.

State officials now want to bring greater transparency to New Hampshire consumers and presented a webinar outlining the progress they have made.

“We believe cost transparency lowers health care costs by allowing consumers to shop for and compare the cost of medical and dental services,” said David Bettencourt, New Hampshire deputy insurance commissioner. “HealthCost empowers consumers to know what they’re likely to pay. It also enables providers to compare their prices.”

Bettencourt noted that other states have created similar websites. “To them, I say welcome. Let’s learn from one another. It’s all about getting the best result for the consumer.”

Consumers are reaping benefits since HealthCost went online, said Jason Aziz, director of health economics with the insurance department. Patient out-of-pocket costs decreased by 11%. In five years, consumers saved $7.9 million on X-rays, CT scans and MRIs alone.

Not all health care services are “equally shoppable,” Aziz said.

“Do you price-shop for health care services if you’re having a heart attack? An urgent health crisis?”

But, he added, nonemergency care lends itself to price shopping. Consumers can go online and compare prices on services such as radiology imaging, elective surgeries, laboratory and pathology services, and screening services such as colonoscopies and primary care services.

The market for health care services is different from other markets, Aziz said. “For most commodities we buy, have information on price and quantity.”

But meaningful price information is difficult for consumers to obtain prior to receiving care. Price transparency efforts seek to reduce the “price opacity” to the actors in the market, consumers and producers.

As an example of how the price of a health care service can vary widely, Aziz cited a test to measure parathyroid hormone levels. A look at the HealthCost website showed the cost statewide ranged from $33 to $564 with the statewide average at $52.

The Center for Medicare and Medicaid Services identified at least 300 services as shoppable, Aziz said, with that number expected to increase to 500 within the next 12-14 months.

The Consolidated Appropriations Act, passed by Congress in December 2020, requires group health plans to give enrollees access to a price comparison tool.

Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at Susan.Rupe@innfeedback.com. Follow her on Twitter @INNsusan.

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Susan Rupe is editor in chief, magazine, for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at susan.rupe@innfeedback.com.