The success of HSA-qualified plans and evidence from the RAND health insurance experiment show how patients are prudent consumers of medical care when they spend their own money, rather than an insurance company. Ari Armstrong relates his personal experience in a recent article:
Not only does my doctor knowledgeably answer all my questions, she’s also sensitive to my budget. For example, she wanted to see blood tests for my cholesterol readings and glucose levels. Rather than order up expensive tests, she looked at my cholesterol readings I got at no cost at King Soopers just weeks ago. She suggested that I get follow-up blood work in three months.
After my wife’s doctor’s office ordered expensive blood work for her and then, against my wife’s explicit directions, gave the lab our insurance information, I figured out how to get cheaper blood work directly. The King Soopers pharmacy normally charges $20 for a “finger prick” cholesterol test. Lab Corp draws blood for only $25.55 through PrePaidLab.com.
My doctor also recommended checking my fasting blood glucose levels a couple times with a home meter. I bought a meter at Walgreens on sale for $9.99, which was entirely discounted through a rebate. [Update: after submitting this article and neglecting to read the directions for the meter, I messed up the test and ended up spending another $9.99 for a new meter. I got the "no coding," smaller meter from Walgreens that's much easier to use.]
Read the whole article: Health and the Empowerment of Payment.
