Subscribe
Transparency in costs across the national healthcare landscape is essential to optimize health outcomes. To date, policymakers have aimed to address healthcare price transparency issues through actions like the 2022 Transparency in Coverage Final Rule, which requires health insurers to disclose pricing for covered items and services.
However, little progress has been made to date in addressing the lack of transparency within the Medicare system, specifically when it comes to Medicare plan premiums and other fees, included and excluded benefits, and alternative plan options.
For too long, Medicare beneficiaries have been in the dark about the cost of their healthcare. Often, it’s only after they obtain their services and receive a bill that older Americans realize just how much those services cost them. In theory, every Medicare beneficiary is supposed to be fully aware of each service and drug prescription that’s covered under their plan; however, because beneficiaries are rarely presented with comprehensive information about the components of each available plan, it can be difficult to select one that minimizes out-of-pocket costs.
The Medicare enrollment process can be completely opaque. Medicare advertisements often focus on seemingly attractive plan parameters that may sway a customer towards a plan: “$0 monthly premiums” is the catchphrase in marketing materials of many Medicare Advantage plan distributors, and it is often misleading. Quite frankly, even Original Medicare headlines from reputable news outlets praise the decrease of the 2023 Medicare premium and remain silent on the increased Part A deductible, which for many beneficiaries means the opposite outcome than these headlines would suggest.
The plan’s monthly premium does not paint the whole picture. Hella Health helps customers understand the total cost of Medicare plans. We strive to give the whole picture. Focusing on measures like the “Minimum Estimated Cost” of a plan might not look appealing (and probably costs us business), but we strongly believe that customers should see it before making their enrollment decision. Customer transparency is crucial because seniors have the lowest health literacy levels of any age group, according to a UnitedHealth Group report.
Systemic roadblocks stand in the way of older Americans’ ability to demand full transparency when it comes to all aspects of their Medicare plans – and this goes beyond just costs.
Older Americans are rarely in full control over their own plan selection and the enrollment process in general. Dealing with pushy salespeople over the phone makes it extra difficult to see the full picture. There are thousands of plans out there, and some are better fits than others. Meanwhile, these salespeople are driven to steer future beneficiaries toward the plans they are incentivized to sell.
The answer to this dilemma is simple: put beneficiaries at the center of the Medicare experience. Older Americans should be aware of each of the plans they’re eligible for in the marketplace instead of just one or two plans that a phone salesperson pushes onto them.
A user-centric model is at the core of our initiative at Hella Health. Our tools help users become more Medicare-savvy so that they can better understand the ins and outs of the whole experience from initial enrollment onward. We prioritize letting users describe their unique medical needs in their own terms, and of course, our users are always in full control of their healthcare data.
Hella Health is a platform that prioritizes transparency across all avenues – from how we protect users’ personal data to how we make money. There are no surprises, no misaligned incentives, no unwanted calls, and no pushy sales tactics. We’re always upfront, and we want key Medicare stakeholders to match our commitment to transparency.
Author Bio: Rafal Walkiewicz is the CEO and founder of Hella Health, the first 100% digital platform built to educate and enroll customers in Medicare plans. Rafal has a track record as a thought leader in the insurance industry. His innovative thinking and expertise in insurtech trends set him apart as a disruptor in a sector where change is long overdue. You can read some interviews here: https://bit.ly/3bMhGhz and https://bit.ly/3vVjzj0
