Q3 Healthcare Transparency Index Reveals Wide Cost Variances for Dental Services
Report from Change Healthcare finds women and seniors more likely to visit dentist; frequency of visits declines rapidly after midyear
NASHVILLE, Tenn., Oct 17, 2011 (BUSINESS WIRE) --
Healthcare costs continue to rise, driving more employers to stop
offering dental coverage -- resulting in only 57 percent of Americans
covered by a dental plan, as compared to more than 85 percent who have
medical insurance. In addition, dental plan designs typically vary
widely from medical coverage, creating higher out-of-pocket costs for
patients and making the market for dental services much more
consumer-driven. These cost and economic concerns have combined to
create an alarming trend: employees and their dependants are skipping
regular visits and neglecting dental care.
With an estimated $108 billion spent on dental services in 2010
according to the Centers for Disease Control (CDC), Change
Healthcare's latest Healthcare
Transparency Index revealed considerable price disparities and local
savings potential for the most common dental services, including adult
and pediatric preventive exams with and without x-rays, adult cavity
repair, application of braces with pre- and follow-up visits, and wisdom
teeth removal with sedation or anesthesia. The Index, compiled from a
sub-set of the Change Healthcare client database, which analyzed more
than 30,000 in-network claims nationwide over a 12-month period, found
that the billed amounts for dental services could vary by more than 400
percent in the same area for the same service.
--
Preventive Dental Exams: Routine dental exams are the primary
way to prevent tooth decay and gum disease. An estimated 75 percent of
adults suffer from gum disease, and while tooth decay is the most
common and preventable disease in children, a U.S. Department of
Health and Human Services study cites that only 48 percent of children
entering kindergarten had seen a dentist in the previous year. With
cost now a significant barrier to proper care, the Index found that
the same preventive exam for adults could cost as much as $240 and as
low as $55 in the same area, and pediatric exams ranged from $180 to
just $35.
--
Cavity Fill and Repair: One of the most common dental
corrective procedures, cavity repair offers great savings potential.
The Index revealed that patients could be paying up to three times as
much per cavity. Claims data indicated that cavity repair at the
high-end could cost as much as $360, making these services
unattainable for many -- leading to much more expensive long-term
health issues.
--
Orthodontics: Having braces is a fact of life for millions of
American children and even adults. However, insurance carriers often
offer a fixed amount or maximum benefit allowance for braces
application, and in many cases individuals may need braces twice in
their lifetime. This Index reported a high cost for orthodontic
services (including a pre-visit, braces application and follow-up
visit) of $6,960, compared to a low cost of $2,400 in the same area.
--
Wisdom Teeth Removal: Recommended by most dentists as a way to
maintain oral health and appearance, removal of wisdom teeth is a
generally painful procedure, both physically and economically. The
Index revealed that a patient could save more than $2,000 by simply
switching providers. Many medical plans cover wisdom teeth removal,
and as more employers and consumers switch to consumer-driven health
plans, cost transparency offers tremendous savings opportunities.
Interestingly, the Index also uncovered other trends regarding dental
utilization rates. The data indicated there was a steady decline in
dental visits in 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. Seniors aged 60
and above were also the most likely to receive dental care, compared
with young adults aged 21 to 30 representing the least likely.
"Unfortunately, dental services are one of the first benefits to be cut
when the budget gets tight, creating risk related to a lack of
compliance with recommended dental care, including checks for secondary
conditions such as mouth cancer," said Howard McLure, Change
Healthcare's chairman and CEO. "This quarter's Healthcare Transparency
Index demonstrates that patients do have significant cost saving options
for common dental services, especially important as the employee's share
of these expenses increases."
Additional Resources
--
Report:
http://www.changehealthcare.com/hcti/index.html
--
Blog:
http://www.trendsparency.net/
--
Tweet this: Q3
#Healthcare Transparency Index from @askch reveals savings on #dental
services
http://bit.ly/nLmIK1
About the Healthcare Transparency Index
Due to rising healthcare costs, employers are increasing deductibles and
considering aggressive benefit plan design changes. Employees and their
families will be increasingly accountable for "shopping" and paying for
their healthcare, making it more critical than ever to understand the
costs involved. Currently, consumers of healthcare have no information
and no tools to help them make decisions. The Healthcare Transparency
Index (HCTI) is the first to provide healthcare consumers with ongoing
trends data about actual healthcare costs, offering insight into
critical opportunities for savings. The data is sourced from Change
Healthcare's proprietary, HIPAA-compliant database generated from client
activity. This quarter's Healthcare Transparency Index includes data
compiled from a sub-set of the company's database including more than
30,000 dental claims. The report's pricing and behavioral content is
derived from the Change Healthcare Transparency Messenger(TM).
For more information, please call 800-655-0732.
About Change Healthcare
Change Healthcare (
www.changehealthcare.com )
has set the industry standard for true healthcare cost transparency -- a
critical component to combating rising healthcare costs and insurance
premiums while also reducing out-of-pocket responsibilities for
consumers. Built on more than three years of medical claims data, the
company's web-based solution, Transparency Messenger(TM),
provides employees with personalized views of pricing information and
proactive alerts that highlight opportunities to save money on routine
care and prescriptions in their local area. By enabling informed
decision-making prior to selecting and receiving care, Change Healthcare
delivers substantial cost savings to both employers and employees.
Change Healthcare works with more than 400 self-insured businesses
across the U.S., representing more than 212,000 lives.
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