Health Care Price Transparency And The Travelocity Model

Mike Leavitt, the secretary for the U.S. Department of Health and Human Services, talked about health care price transparency in a public address at Harvard University. Leavitt wants to implement a system where people can compare prices and quality for medical procedures similar to the model Travelocity.com uses to find airline tickets and hotel reservations.

In his address, Leavitt described about his experience comparing prices for a colonoscopy. In Washington, D.C., his city of residence, the procedure costs $6,000. But he checked out prices in Utah where he has family, and it was only $3,000. He had the procedure done in Utah, reported Healthcare IT News.

“I had no idea how much a colonoscopy costs. I would normally have just given them my insurance card and not asked any questions. This is what most Americans do, and it is how the nation is experiencing runaway health care costs at an alarming rate,” he said.

Leavitt went on to say that Americans should be able to compare prices and quality of care just like the Travelocity model. Without a more efficient system, health care costs could single-handedly “erode the nation"s standing as an economic leader in the world marketplace.”

“The reason people don"t make good decisions on their health care now is they don"t have the data,” Leavitt said.

He didn"t say anything about comparing health insurance plans to find good coverage — but that"s important, too.