7 Benefits of Healthcare Cost Transparency for Patients and Providers

Did you know that, of more than 1,000 patients surveyed by Experian Health in 2024, 96% want an accurate estimate of costs before treatment — and 43% would call off their procedure without it?¹

This desire for transparency isn’t surprising given the rising costs of healthcare, which can translate to higher out-of-pocket costs for patients. By making healthcare cost transparency a priority in your practice, you may help patients avoid unexpected bills — and help improve the patient financial journey and boost patient retention.

The Need for Transparency in Healthcare

Healthcare cost transparency refers to the availability of readily accessible information on the prices of healthcare services. This information can help define the value of healthcare services and enable patients to identify, compare and choose providers that may offer the value they seek.

Some of the most relevant costs for patient decision-making? Out-of-pocket expenses. For insured patients, these expenses may consist of:

• Coinsurance
• Copays
• Deductibles

Here are three key reasons healthcare cost transparency matters:

Rising healthcare costs

According to the Synchrony Lifetime of Healthcare Costs study:²

• Americans surveyed who were insured with an employer-sponsored health insurance plan can expect to spend more than $320,000 (including premiums and out-of-pocket costs) over their adult lifetime.
• This number could be more than double — nearly $700,000 — for those who purchase their own insurance.

Given the high cost of care, it’s no surprise that more than 1 in 4 Americans surveyed worry about or can’t pay off healthcare debt.²

How up-front cost estimates can help: They may alleviate financial anxiety and help patients plan for care.³

Unexpected healthcare expenses

No one wants to be caught off guard by unexpected healthcare bills. Yet that may often be the case, as Synchrony’s study found that healthcare costs are nearly 1.5 times higher than what most people estimate:²

• Patients think they spend $850 in a year.
• Patients actually spend $2,100 in a year.

Over a lifetime, this means surveyed patients underestimate their out-of-pocket expenses by around $76,250, which may leave them financially unprepared.²

How up-front cost estimates can help: Patients can better avoid unexpected expenses and make informed decisions about care.³

Missed payments

Benefits of Healthcare Cost Transparency for Patients

Consider these four patient-centered benefits of healthcare price transparency:

Benefits of Healthcare Cost Transparency for Providers

Consider these three benefits of healthcare cost transparency for healthcare providers:

Implementing Cost Transparency in Practice

Eighty-eight percent of providers surveyed say there’s an urgency to improve or implement accurate patient estimates.⁸ If you’re wondering how to provide cost transparency in your practice or organization, consider these strategies:

Take advantage of technology

You’re not on your own to help patients figure out the cost of care — technology solutions are available to help increase accuracy in cost estimation and reduce staff burnout.

By investing in an online price estimator tool, your practice or organization can provide patients with:

• User-friendly estimates of their out-of-pocket costs
• Total cost of care based on prior cases

If the patient has health insurance, pricing tools may automatically apply the coverage details, including copays, coinsurance and deductibles.

Note, however, that ensuring accuracy in cost estimation can be a challenge:⁴

As you consider various price transparency tools, look for solutions that are:

• Comprehensive
• Easy to navigate
• Capable of providing accurate and patient-specific out-of-pocket estimates

Balance transparency with privacy concerns

While the Health Insurance Portability and Accountability Act (HIPAA) protects patients’ rights to privacy over their health information, it may also make the disclosure of health data challenging. To balance these competing concerns:

• Adopt strong security measures in your practice — such as encryption technologies and multifactor authentication — to safeguard sensitive patient data.
• Train staff members to protect patient privacy while promoting informed decision-making.

Train staff to communicate costs effectively

Seventy-seven percent of patients surveyed say it’s important that their provider can explain what their insurance covers before treatment.⁸⁹ This is an opportunity for your staff to:

• Lean on your price estimator tool to help patients understand the cost of care.
• Discuss flexible ways to pay.

For example, when your practice offers flexible financing with the CareCredit credit card, you can use its payment calculator to show patients their estimated monthly payments — helping them quickly understand what they can fit into their budget so they can move forward with recommended care.

Enhancing Transparency in Healthcare

The high cost of healthcare can translate to unexpectedly high out-of-pocket costs for patients. But with up-front, accurate and transparent healthcare pricing, your practice can give patients the information they need to make better decisions and budget for recommended care, thereby helping increase patient satisfaction and loyalty to your practice.

You can also invite your patients to explore Synchrony CareCredit’s Fair Financing Principles hub, where they can find helpful resources to guide their financing decisions, such as how deferred interest financing works, how to read a billing statement, how to use a procedure calculator and more.

A Patient Financing Solution for Health and Wellness Providers

If you are looking for a way to connect your customers with options that empower them to pay for the care they want or need, consider offering CareCreditas a financing solution. CareCredit offers individuals two ways to pay for out-of-pocket health and wellness expenses over time — the CareCredit credit card or a CareCredit Pay Later loan — while helping enhance the payments process for your practice or business.*

When you accept CareCredit, patients or clients can see if they prequalify with no impact to their credit score, and those who apply, if approved, can take advantage of special financing on qualifying purchases.* Additionally, you will be paid directly within two business days.

Learn more about CareCredit as a financing solution or start the provider enrollment process by filling out this form.

Author Bio

Robyn Tellefsen is a freelance writer and editor with more than 20 years of experience covering health and wellness, finance and more. Her work has appeared on sites such as LoopNet, Beachside Rehab, First Horizon Bank, SoFi, A Place for Mom, American Express, Chase and more.

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