Being A Smarter Healthcare Shopper

Allow us to get all “big-picture on you” for a second. HSAs are often talked about within the context of a big idea called “consumer-driven healthcare” or “consumer directed healthcare.” The idea behind CDH (as they call it in the media), is that in order to fix the ailing healthcare system, consumers have to be given control of their healthcare plans and start making decisions about how to spend their healthcare dollars based on the real cost of healthcare.

You’re probably thinking “Huh?” And perhaps beginning to nod off. We’ll elaborate, and we’ll keep it snappy. For starters, it means that HSAs give you control over your healthcare dollars, instead of paying them all in premiums to insurance companies. As a result, we’ve all got a good reason to find the best medical services at the best prices in order to get the most mileage out of our hard-earned HSA dollars.

The Industry of Healthcare (and all that business)

We’ll spare you the lengthy economic theory, but consumer-driven healthcare has the ability to force some much-needed change on the healthcare industry. Think about healthcare as it works today—it’s the only industry where you go in and have someone perform services without knowing how much it will cost. And since insurance companies often pay claims slowly and irregularly, providers are never really sure when or if they’re going to get paid. Kind of makes it difficult to run healthcare like a fair business. And as much as some people don’t like to think about healthcare as a business—it is. We all pay for it, and people get paid for giving it. Like it or not, it’s a business, and it’s a business that will become more fair as consumers get involved.

MMMMM...Healthcare Buffet

Another problem caused by traditional insurance is over-utilization. Some people use their their insurance as if they were pulling up their chair to an “all-you-can-eat” buffet. Since most insurance plans just charge a small co-pay for services, people don’t have much of a reason to seek the most appropriate method of care—it all costs the same, after all. So our emergency rooms are frequently clogged by people seeking emergency care for non-emergency problems.

Consumers Win! (GOOOAAAALLLL!)

But think about what happens when you start having choice and control over your healthcare dollars. If you’re like us, you’ll find a doctor who publishes prices, or you’ll go to quick clinics for more routine healthcare needs. You’ll shop for prescription drug prices. You’ll recommend good doctors with great prices. And what happens is the same thing that happens to every other competitive business—you vote with your dollars. Competition for business causes providers to offer better services at better prices in order to keep their clients. And everybody wins— especially the consumer. And boy, it feels good to win.

Your HSA is already saving you money. But it’s also giving you the freedom to save even more money by becoming a better consumer of healthcare. To help you along, here’s a few things to start doing right away:

• Use Our tools.

  There are a number of great online resources that can help you find lower-cost providers, better hospitals, and cheaper drugs. See a list of our recommended tools on the Resources Page which we’ll continue to update as you help make us smarter.

• Ask questions.

  Don’t be afraid to ask your doctor how much a procedure will cost, if there’s a cheaper alternative to a drug he or she prescribes, or a cheaper way to treat a condition. Sometimes, simple lifestyle changes are as effective—if not more effective—than a prescription drug.

• Investigate options.

  When you shop for a car, you don’t drive to the nearest dealership and pick the first car on the lot. Healthcare doesn’t have to be that way either. Having surgery? Call a few local surgery centers and request prices, take advantage of any network discounts available through your insurance plan, or ask friends for recommendations of where to go.

• Get involved.

  HSAs are gaining speed and getting better every year, but the best way to get more people on the bandwagon is to raise your voice for politicians, policy-makes, business owners, and other consumers to hear. Visit our forums – share your positive experiences, ask questions of experts, and speak with HSA advocates. Your support can make the system better.