Transparent Prices Fail to Lower Health Spending, Study Shows
. . . these researchers evaluate the wrong cohort for the wrong issue.
Employees with employer paid health insurance are all but completely insulated from the price metric. Yet these researchers attempt to determine how price sensitive they are, not at all is the reality.
The reason this cohort is price insensitive, is because they bear very little of the cost. Even for those who pay some copay or have some deductible, these amounts are tiny. Plus, these employees do not associate the cost of insurance, which is mostly borne by the employer, with a cost they bear themselves. This is an incorrect understanding of the economics, but true regardless.
If you wish to see how transparent prices affect actual health spending, one needs to choose a cohort people who have only an HSA (Healthcare Spending Account) and do not have insurance, a second group who have both an HSA and self paid, high deductible health payments reimbursement insurance, and probably, a third group who have employer paid insurance.
In addition, the study would need to be of sufficient duration, probably 10-20 years so that those with the various health payment options would unlearn the decades of bad economics we have all learned since the beginning of the health insurance/government fiasco began durning WWII.
Watching the one group who is all but immune to health pricing is incomprehensible incompetence.