Consumers Seek Transparency Around Treatment Costs, Healthcare Deals

September 13, 2022 - Consumers voiced their support for more transparency around healthcare costs and deals, with three-quarters of respondents supporting protections against site-based treatment cost increases in an AHIP survey.

“Every American deserves access to affordable, comprehensive, high-quality health coverage and care. But rising health care costs continue to be a top concern for consumers nationwide, especially during a time of high inflation,” the press release stated.

AHIP commissioned Locust Street Group to conduct the survey. The group surveyed 1,000 Americans who were covered by employer-sponsored health plans. Respondents participated in the online survey from June 7 to June 22, 2022.

The survey identified three main findings related to consumer perspectives on health care costs in 2022.

First, most consumers across the political spectrum agreed that providers should not be permitted to charge unnecessary administrative fees and medical services mark-ups. Nearly eight out of ten respondents said that they supported this statement (78 percent), with three-quarters or more in each political party reporting this response.

Second, there was also strong bipartisan support for protections against hospital monopolies. Over three-quarters of consumers supported preventing hospitals from consolidation, mergers, and acquisitions that involved bringing other medical practices into one hospital system (76 percent). Consumers also indicated support for protections against site-based cost increases (75 percent).

Respondents wanted more transparency about healthcare deals. Slightly more than seven in ten consumers supported improving transparency around private-equity firms’ healthcare acquisitions.

Third, the researchers also found bipartisan alignment around telehealth. Slightly more than two-thirds of respondents agreed that the government should eliminate regulatory barriers to telehealth utilization (67 percent).

“Consumers value choice and flexibility in how they access health care. Telehealth proved to be an essential resource for consumers throughout the COVID-19 pandemic and should continue to play a role in the future of health care,” the survey stated.

Although the coronavirus pandemic allowed for rapid expansion of telehealth utilization with regulatory relaxation, this progress is threatened by the end of the public health emergency.

During the initial stages of the coronavirus pandemic, policies around licensure loosened in order to maintain consumers’ access to care. In 2022, however, the debate over telehealth licensure rages on as policymakers try to decide what flexibilities will remain permanent post-pandemic.

Healthcare deals have long been under scrutiny both inside the industry and outside of it, as the nation assesses what types of deals create healthcare cost spikes and which effectively streamline processes and lower healthcare spending.

While health insurers tend to condemn hospital mergers as responsible for hiking healthcare costs, the research on this matter has produced mixed results. Some studies have found that mergers can lower costs. However, a separate study from AHIP indicated that hospital consolidation can produce higher prices for consumers due to lower hospital competition.

This has not stopped the health insurance industry from participating in its own slew of mergers and acquisitions. In 2022 alone, healthcare has seen some major deals emerge. The Change Healthcare and UnitedHealth Group merger continues to be delayed. Anthem finalized its managed care acquisition of Integra. And Humana announced its plans to acquire a Medicaid managed care organization in Wisconsin.