The price of a knee MRI in Colorado varies from $350 to $2,336. It鈥檚 a huge gap, but it鈥檚 also remarkable that the prices themselves are known at all.
Prices for health care aren鈥檛 public in most states, making shopping for the best deal nearly impossible. Different patients pay different prices for the same procedures based on their insurance coverage, and even the doctors who order the tests are often聽unaware of the price variations.
But 聽have now established health care price databases to help people shop and compare. Colorado , launching its Thursday, the same day a consortium of major health care purchasers (including Wal-Mart, GE and the AFL-CIO) issued
Providers, payers and government in Colorado agreed to build the new foundation-funded database .聽鈥淭his is absolutely vitally important if we鈥檙e going to realize the magic of the market to improve outcomes in the marketplace,鈥� says Jonathan Mathieu, director of data and research at the 聽in Denver, which is maintaining Colorado鈥檚 database.
Right now, it鈥檚 only partially complete. It will be about a year before consumers can easily plug in a given medical procedure and get a price quote.聽 But preliminary data are shedding light on how much prices vary.
The eight-fold range in MRI prices stands out, as does a four-fold difference in spending per health plan member between nearby counties.聽It ranges from a low of $1,000 per year in Hinsdale County to a high of just over $4,000 in Pitkin County.
For now, Colorado鈥檚 database isn鈥檛 naming specific hospitals or providers along with the prices. Phil Kalin, president of the聽foundation that runs the database, says that鈥檚 because they want to give providers a chance to vet the data and analyze it anonymously at first.
鈥淣o gotchas,鈥� Kalin says, 鈥渨e鈥檒l name names later.鈥�
The Center also doesn鈥檛 want to name names until the database is more complete. Right now it only has information on what Medicaid and the state鈥檚 eight largest insurers are paying, which covers about half of Colorado鈥檚 insured population. Over the next year it will add data from Medicare and other private payers, encompassing 90 percent of all covered Coloradans.
This story is part of a collaboration that includes , 聽and聽Kaiser Health News.