November 19, 2020

Consumer Spending

Consumers will control more of their own spending in healthcare, choosing where to spend their dollars in a high-deductible, HSA-driven world and potentially able to choose among a broader array of networks in a defined-contribution framework.  As this shift occurs it will be important to understand how consumers make these choices. Price will clearly be the largest driver of choice at both the point of coverage and the point of care. Importantly, however, consumers will weigh price against the benefits available—clinical reputation, care quality, convenience, and so forth. Providers will need to work hard to earn consumer choice at the point of care by ensuring that costs are competitive and consumer benefits are commensurate with price. And they’ll have to work to bring cost down in order to be included in networks at the “wholesale” level as well.