We’re big advocates for healthcare price transparency here at Point Health. We believe it can help everyone, but there are some groups that price transparency is especially beneficial for. 

For example, alternative health plans such as:

• Limited benefits medical plans (LBMPs)
• Discount medical plans (DMPs)
• And association health plans.

Keep reading to find out why price transparency is the secret weapon alternative health plans need.

Price transparency can lower healthcare costs.

Since alternative health plan members often have out-of-pocket costs, it’s beneficial for them to be able to shop for nonemergency care. Through price transparency, shopping and comparing healthcare services can become a reality for your members. This of course means that members will choose the most affordable option that meets their care needs, resulting in lower costs for them and you. A cost-effective way you can offer usable price transparency to members is to use a third-party patient advocacy app that shows members pricing in their area upfront.

Price transparency sets you apart from competitors.

You need to set yourself apart from competitors, but how do you do that without spending a fortune? Price transparency! Few alternative health plans offer a way for members to shop-and-compare healthcare services. So when you do, you’ll automatically stand out. Plus, offering a benefit that allows members to effectively use price transparency for healthcare shopping adds a personalized, digital capability to your offerings. And according to one study, health plans with digital capabilities outperform competitors in overall satisfaction by 5%. The same report also found that 57.5% of members, across all ages, believe it’s important for health plans to offer digital self-service features. This leads us to our next benefit of price transparency: better satisfaction and retention.

Price transparency can improve member satisfaction and retention.

News flash: people want to know the prices of healthcare and want to be able to shop for healthcare. A McKinsey study found that 41% of members reported that one of their top three needs from their payer is to make things easier to understand. Plus:

• 58% of those surveyed said they wanted clarity around how much their healthcare will cost.
• 50% reported being unsatisfied with their ability to access cost information.
• 60% said cost was the most important factor for them to know before selecting insurance, choosing where to get care, or deciding on a treatment.

By enabling your members to access transparent prices you can meet the needs that almost 100% of Americans want. Imagine how much your member satisfaction, retention, and even growth would increase by providing this service.

Final thoughts.

Offering price transparency is a simple and cost-effective way to:

• Lower your overall costs,
• Stand out from competitors,
• And improve your member satisfaction, retention, and growth.

Best of all, you don’t even need to build out your own price transparency service. You can partner with a third-party digital health company that easily integrates with your current offerings to bring price transparency to your alternative health plan.