I agree that under the copay model of health insurance the consumer was separated from the real cost but that is changing now with higher deductibles and Health Savings Account which gives consumers a say in how they spend their health care dollars.
There are plenty of cost and quality transparency tools that are offered to customers through their health insurance companies or employers and there is a steady increase of consumers using these tools. Providers will start to be more competitive in their pricing when they start to see business going to more cost effective providers that provide the same quality of health care.
We have an insane model of health care where the consumer has no idea of the cost until after services have been rendered. There is no other business like that. Can you imagine going into Best Buy and buying a brand new TV or appliance and not knowing the price until after you have agreed to purchase it?
Health insurance companies are also working with health care providers to change the reimbursement models. The old style fee for service still exists but providers are beginning to see the advantages of a reimbursement system based on the quality of care and positive clinical outcomes. I have been involved in such a project and at first providers were suspicious but those who were part of the pilot have not only seen their revenue stream increase they are able to spend longer with their patients and no longer focused on seeing the maximum number of patients regardless of the outcome which the fee for service model encourages.
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