Is Price Transparency For Dental Insurers And In-House Pricing Plans On The Way?

Is Price Transparency For Dental Insurers And In-House Pricing Plans On The Way?

It might not be on your radar yet, but as of January 1, 2021, the Affordable Care Act has begun phased-based medical price transparency. It begins with hospitals, outpatient departments, and ambulatory surgical centers and will expand to include clinics and doctor’s offices. This includes the difference between cash rates and what each insurance provider pays per service.

Consumers are increasingly demanding transparency in healthcare pricing, and while dental services aren't currently covered under the new federal rules for price transparency initiated by the Affordable Care Act as of January 1, 2021, the trend is clear. The Act has already begun to enforce price transparency in hospitals, outpatient departments, and surgical centers, with plans to include clinics and doctor’s offices. This involves disclosing cash rates versus insurance reimbursement rates. Although dentists and dental insurers are not yet required to follow these guidelines, the push for clarity in pricing is growing. Dental professionals should prepare for potential changes and consider implementing transparent pricing strategies to meet consumer expectations and stay competitive.

Dentists and dental insurers aren’t currently included in this new federal rule, but dentists must take note.

Consumer’s Want To Know

Medical pricing transparency and consumer protection have been a hot topic of debate for decades. Other than alternative practitioners, very few essential healthcare providers openly share their price lists. While most dentists and oral health specialists provide transparent pricing upon request, most don’t post pricing to their website. Or provide a printed price list.

Why not? It simply isn’t the medical industry standard, but consumers want to know. In fact, 74% of consumers would be willing to pay up to $50 for transparent pricing prior to a procedure.

Insurance Prices Vary Greatly

You accept vastly different payments from insurance providers for the same dental work. This is something you already know, but soon patients will understand this too. Gradually, patients will be able to access a realistic range of rates of cash rates, as well as costs negotiated with insurers.

They will see that sometimes cash prices are higher than what insurance providers pay. This may not be the case for your dental work, but as patients become informed consumers, the line of questioning they ask before they schedule with any medical provider will shift.

The Likely Ripple Effect

One of the objectives of the Affordable Care Act is to create competition between healthcare providers, by empowering patients to weigh both quality and budget. In the past, patients have been disempowered to comparison shop, typically choosing with the physician or facility they are referred to.

Once transparency becomes the healthcare norm, patients can shop around for non-emergent care. This will likely create a ripple effect among local healthcare providers, resulting in more competitive rates.

Just like when searching for the lowest rental car rates, hotel pricing, or airfare—a new generation of medical aggregate sites has already been launched. This includes Health Cost Labs and Turquoise Health. While their focus is on the Affordable Care Act, consumer demand for dentists is likely to arise, even if it’s not required by the federal rule.

As a dentist, your patients are already shopping around, and you already have a price list you share upon request. So, while the Affordable Care Act rule doesn’t include you—there’s no reason not to provide pricing.

Cash Plan Transparency To Grow Your Business

Medical providers are being asked to consider patients as both patients and consumers. This isn’t the current industry norm, but there are benefits to adding your cash plan pricing to your website.

Both prospective and returning dental patients are searching online in an effort to comparison shop. Most are only able to access nationwide or regional price ranges within a $400+ price range per procedure. Add your pricing to your website and you are likely to rank higher in your local online search results. Also, your transparency provides a competitive advantage by building consumer trust.

Weence Can Help You Digitally Capitalize On Dental Pricing Transparency

As a digital marketing firm that specializes in the unique challenges and marketing restrictions that dentists face, Weence is all for price transparency. We take a strategic approach to help you grow your business, which includes helping you populate in local area search results.

Dental work pricing trends in every state and region, so by adding an SEO-optimized pricing page, you can answer consumer questions, improve your page rank, and book more patients. We invite you to reach out today to learn more!