Price transparency that isn't transparent!

I think the BIG HEALTHCARE industry sees the writing on the wall—real price transparency is coming. So they’re doing what they do best: hijacking the conversation and steering it in a direction that serves them before it’s too late.

Their argument? Patients don’t need to see actual prices. They only need to know their out-of-pocket costs—what they’ll pay at the counter. 

AHIP claims to be "Taking the Lead on Transparency" and argues that "[f]or patients...[they] are the best resource for individualized cost information...specific to an individual enrollee’s coverage, such as their... progress toward deductibles or out-of-pocket maximums... [I]n-network negotiated rates and ... allowed amounts ... do not provide actionable, personalized price transparency information for consumers."

So out of pocket costs is the extent of transparency they’re willing to offer. 

This is not transparency at all—its the opposite - its an industry sleight of hand. 

Imagine belonging to an exclusive buying club—let’s call it Costlyco. You have no choice but to be a member and your employer has actually negotiated the terms of the deal for you. At first, the perks seem incredible. 

A massive $6k flat-screen TV for only $5 - the pice tag is front and center - clearly marked. 

A brand new $2k electric bike is marked $10 - no confusion there. 

A top-tier computer system for $50 instead of $5k - whoa, what a deal! 

And when you checkout, they clearly tell you these items are going to cost you $65.00? They will even provide you with a receipt for $65 at checkout.

Costlyco pats itself on the back for its ‘transparency.’ 

The only thing is, at the end of the year, Costlyco adds up the real prices of everything you “bought” and adjusts next year’s membership fee accordingly. So while you only paid $5 for the TV at the counter, the privilege of shopping at Costlyco next year will cost you $20k in annual dues. 

When the $20k gets taken out of your paycheck - you're irate! Why does the membership fee keep going up and up year after year!!!! 

So you see, this isn't transparency at all. This is hiding the ball. This is a gotcha. This is BS. 

And yet... this is the "transparency" that industry is promoting. It tells you nothing about the actual price of care—just what you owe at the moment. The big bill comes due next year! 

In this analogy, the real prices of the products are the negotiated rates... the ones that AHIP thinks consumers will find too complicated and not actionable. 

Really? You might spring for the less expensive TV next time or you might go to a different store all together. Not actionable my &*^. 

The best bit? The only people that know what the actual price of the goods are is Costlyco... and they keep it a secret. 'Just trust us - it all added up to $20k per employee... we promise.' 

Real transparency isn’t just about what you pay at checkout.

The industry knows that, and they’re hoping you don’t.

FYI - I love Costco