Insurer Pays clients for Shopping Around

Priority Health of Grand Rapids, Michigan, a health insurer, is giving its patrons a cash incentive to shop around for medical procedures. Awards range from $50 to $200 for choosing a less expensive option on 300 common health procedures. According to Karen Bauffard of the Detroit News, selecting a less-costly knee replacement surgery, hysterectomy or rotator cuff repair can result in a gift to the patient of a $200 Visa gift card from the health insurer—while also saving on deductibles.

Bauffard writes that the program is an attempt to make consumers more conscious of health care costs and provide incentives to health providers to make their procedures more cost transparent. Insurers are finding that employers and individuals are shifting to high-deductible insurance plans in order to reduce their monthly premiums.

Bauffard reports that other state insurers, including Blue Cross Blue Shield of Michigan, which does not have a program like Priority’s, is watching to see if there is more demand for this approach. Priority has paid out more than $40, 000 in rewards since launching the Priority Rewards program two months ago, writes Bauffard who says that members earn $5 just for viewing the prices with a cost comparison tool at priorityhealth.com.