Increased cost and quality transparency in the U.S. healthcare system is the “missing piece,” according to a new report from the American Health Policy Institute (AHPI). The report, conducted by the leading think tank, found that greater transparency, analysis, and utilization of healthcare data can result in cost savings across the healthcare system.
The report, “Knowing More, Managing Better: Transparency and the Emergence of Enterprise Healthcare Management,” analyzed data from companies that used enterprise healthcare management solutions and measured the demonstrated benefits and potential value of broadly deploying transparency tools. It found that the use of these transparency tools had the ability to reduce healthcare costs to employers by 2% over one year, while employees and dependents who did not use the tools had a 4% increase in health care costs over the same time period, resulting in a 6% reduction in cost trend.
In addition, comprehensive enterprise healthcare management not only has the ability to lower healthcare costs for employers, it can also reduce prices across specific geographic areas and cut out-of-pocket spending for individual consumers.
The AHPI study’s results further demonstrate the impact that increased cost and quality transparency, used in conjunction with effective enterprise healthcare management, can make on the U.S. healthcare system. In fact, the report found that just a 3% increase in employees using employer-provided enterprise healthcare management tools could save $16 billion in total healthcare costs from 2016 to 2020.
At Castlight Health, we realize the potential impact of enterprise healthcare management, and have developed solutions to give employers the power to manage healthcare investments and employees the ability to make smarter consumer-based decisions. As the report details, these tools have the ability to lower healthcare costs by increasing the use of low-cost, high quality providers, getting high-cost providers to lower prices, and eliminating unnecessary care.
While obstacles to transparency still exist, we believe that technology paired with greater cost and quality transparency can cure the high costs and poor outcomes of the enterprise healthcare system. That’s why we deliver technology solutions that give employers the information and tools they need to tackle healthcare costs head on.