Change Healthcare released its Q3 Healthcare Transparency Index last week, revealing cost disparities and savings opportunities for the most common dental services, and highlights the benefits of shopping for these services locally.
The index was compiled from the Change Healthcare client database Transparency MessengerTM, which analyzed more than 30,000 in-network claims nationwide over a 12-month period. It found that the billed amounts for dental services could vary by more than 400 percent in the same area for the same, most common dental services.
According to the Centers for Disease Control and Prevention, $108 billion was spent on dental services in the U.S. in 2010. As a result of these rising costs, many employers have stopped offering dental coverage to their employees.
Currently, only 57 percent of Americans are covered by a dental plan, and many employees and their dependents are skipping regular visits and neglecting dental care. According to the Department of Health and Human Services, 48 percent of children entering kindergarten haven’t seen a dentist in more than a year.
“It’s important that patients understand that price variations exist for the same services in all parts of healthcare,” said Howard McLure, Change Healthcare’s chairman and CEO. “As more Americans have to take ownership over their healthcare decisions and are paying more out-of-pocket for these services, this knowledge can help them better manage their healthcare costs.”
The Index found that for a basic adult preventive dental exam, patients could be paying as much as $240 and as little as $55 in the same area. When it came to orthodontics, the Index reported a high cost of $6,960, compared to a low cost of $2,400 in the same area. Other common dental services include wisdom teeth removal and cavity fill and repair, both offering tremendous savings opportunities when switching to local providers.
McLure said cost transparency is a critical component to combating rising healthcare costs while also reducing out-of-pocket responsibilities for consumers.
“Readily available pricing information for healthcare services levels the playing field for consumers, so that they are not needlessly paying extra for routine exams, prescriptions or specialty services,” said McLure.
The Index also uncovered other trends regarding dental utilization rates. The data indicated there was a steady decline in dental visits each quarter, with 38 percent of all services occurring in Q1 and trailing to only 16 percent in Q4. This is in stark contrast to the medical industry, where claims typically increase toward year-end.
In addition, women were more likely to receive dental care, averaging 1.31 visits per year versus only 1.11 for men.
“When it comes to one’s healthcare, even dental care, being able to get the services you need, both treatment and preventive care should be a top priority,” said McLure.