Smart Healthcare Consumers Turning to Health Savings Accounts

"Consumer driven healthcare" is the name thatkids see a doctor is because of a possible ear
has been given to the change that is currentlyinfection. For about $50 you can buy an EarCheck
happening in the medical marketplace. As millionsMiddle Ear Monitor. This uses sonar to test for
of people get Health Savings Accounts, medicalfluid behind the eardrum, which may indicate an
providers are having to adapt to the new realityinfection. "The QuickVue Strep Test" which costs
of people spending their own money whenless than $4 per test in a pack of 25, can quickly
purchasing healthcare. As more companieshelp you determine if your child has a strep
compete for your business, the opportunities toinfection, which would require a doctor's visit,
save money will continue to grow.from a common viral infection, which would not.
Since the advent of employer-sponsored healthDemand Price Transparency
insurance during World War II, the pricing andHealth Savings Accounts reward personal
quality of medical services has been shrouded inresponsibility in three ways: 1) they reward you
mystery. As the real price for computers, organicwith tax-breaks for putting money aside to cover
food, big-screen TV's, and just about everythingfuture medical expenses; 2) they reward you for
else has continued to drop (including healthtaking care of your health by enabling you to
services where there is not a third party payer,grow your account; and 3) they reward you for
such as laser eye surgery, contact lenses, overbeing a cost-conscious and discerning consumer.
the counter medication), the price of healthcareSo be a discerning consumer, and spend your
has continued to rise. But that is finally beginningmoney wisely. Remember that the doctors and
to change. And you, fellow HSA-owners, are thehealthcare providers you see work for you. If
reason.you don't get the quality of service or a fair price,
To gain a competitive advantage, healthcaretake your business elsewhere. Here are some
providers have traditionally attempted to growcommon sense suggestions to make sure you do
local market share in an attempt to extract higherget a good price:
payments from insurance companies. But since1. Ask how much it will cost, before you buy.
Health Savings Account owners have the ability toThere is nothing else that you buy without
accumulate unspent funds and invest themknowing the price up front, so don't feel
tax-free, those of us with a Health Savingsintimidated to ask your doctor the same.
Account have a strong incentive to avoid2. Review your bill before paying it. You might be
unnecessary care, and to be more cost consciousshocked how often extra charges are
when we seek treatment."accidentally" tacked on to hospital bills.
There are now billions of dollars in Health Savings3. Ask for a cash discount. To avoid the hassles
Accounts, and healthcare providers want accessof filing for insurance and trying to collect
to that money. And since you control it (insteadpast-due charges, most physicians will gladly offer
of the insurance company), the only way for thea cash discount if you ask.
provider or retailer to get that money is to offer4. Explain that you will be paying out of your own
you high quality care at a price you are willing topocket. When a doctor is prescribing tests or
pay. And dozens of companies are doing just that.writing prescriptions, he or she is rarely taking
The Market Respondscost into consideration. The American Journal of
One obvious response to the consumer-drivenPreventive Medicine recently reported that up to
healthcare movement is the proliferation of$63 billion in medically unnecessary tests are
quick-service medical clinics. These clinics, whichordered every year.
require no appointment and typically charge less5. Vow never to pay list fees. Doctors and
than $50, offer a low-cost way to diagnose andhospitals routinely discount their services to
treat strep throat, bronchitis, pink eye, and otherinsurance companies and PPO organizations. As a
common ailments. MinuteClinic operates dozens ofcash-paying customer, you should get the best
locations in Target, Cub Foods, and CVSprice available.
Pharmacy stores. Wal-mart, which currently hasFor many years, a small group of health
75 in-store clinics in 12 states, is forecasting moreeconomists and other policy-makers pushed for a
than 6,600 in-store medical clinics will be open inmore market-based approach to healthcare. They
retail stores within 5 years.correctly argued that healthcare was like any
Diagnostic labs, which have traditionally sold theirother market and that if you put a true price on
services to physician's offices, are now offeringhealth care services and let the market function,
tests directly to the public at prices often 70%costs could be controlled. We are now beginning
less than you would pay at a doctor's office. Withto see this happen.
most you can order the test online, go give blood,Our healthcare system is the best in the world. It
and get your results in a couple days.is a dynamic and complex work in progress, which
Companies are even providing self-testingcan only get better as the consumer gets
services and devices which can enable you toinvolved. So be savvy about how you spend your
avoid going to the doctor when minor medicalhealthcare dollar. And watch those unspent funds
events occur. One of the most common reasonsin your Health Savings Account continue to grow.