By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: New WellPoint Plan Increases Healthcare Consumer’s Level of “Skin in the Game”
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > New WellPoint Plan Increases Healthcare Consumer’s Level of “Skin in the Game”
Business

New WellPoint Plan Increases Healthcare Consumer’s Level of “Skin in the Game”

Kenneth Walz
Kenneth Walz
Share
3 Min Read
Image
SHARE

When Warren Buffett used the phrase “skin in the game,” he referred to company managers investing in their own companies. In healthcare, we’ve discussed how equally important it is for consumers to also have some “skin in the game,” bearing at least some responsibility for their costs of care.

When Warren Buffett used the phrase “skin in the game,” he referred to company managers investing in their own companies. In healthcare, we’ve discussed how equally important it is for consumers to also have some “skin in the game,” bearing at least some responsibility for their costs of care.

A recent Wall Street Journal article (subscription required) discusses how WellPoint, the nation’s second-largest health insurer, has developed a group plan in which consumers would be responsible for the cost of medical services in excess of that offered by their employer plans. While WellPoint’s idea doesn’t appear groundbreaking at first, this type of plan would dramatically shift the dynamics of healthcare costs.Image

Here is how the Journal’s Anna Wilde Matthews described the WellPoint plan:

More Read

Health Care Buzz Today
Walmart Moves Health Care Forward Again
Palm Prints
Response to Austin Frakt
What Pharma Can Learn From Lego

“Under the approach, workers are supposed to be given choices among hospitals, doctors or other providers to be used for a procedure—such as an imaging scan or even a surgery—each with pricing and quality information. If they pick one that costs more than the employer offers, they pay the difference. If workers opt for a provider that costs less than the employer’s price, an employer could choose to offer them a credit.”

Other companies are offering similar plans. Under these types of plans, known as reference-based pricing, the cost of care is borne by consumers, insurers and employers as with traditional plans but with the consumer having more control over how the costs are split. As consumers exercise the power given them to make choices, market forces – though still limited – will result in quality being rewarded and costs coming down.

Some questions remain: the definition of “quality” in healthcare remains under debate, and previous efforts for this type of plan had mixed results (apparently because customers didn’t really seek low-cost services). But WellPoint is working with online health rating service CastLight Health to provide the price and procedure data necessary for consumers to comparison shop. That combination of data and responsibility could turn consumers into players, without losing their skins.

TAGGED:insuranceWellPoint
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

dental care
Importance of Good Dental Care for Health and Confidence
Dental health Specialties
October 2, 2025
AI in Healthcare
AI in Healthcare: Technology is Transforming the Global Landscape
Global Healthcare Policy & Law Technology
October 1, 2025
Choosing the Right Swimwear for Health and Safety
News
September 30, 2025
sports concussions
Concussion In Sports: How Common They Are And What You Need To Know
Infographics
September 28, 2025

You Might also Like

Level of Care
BusinessHospital Administration

4 Level of Care Tools: Comparing Level of Care Assessment

May 26, 2014

Leading Expert On U.S. Health Reform Gives His Two Cents

July 18, 2011
Health careHospital AdministrationMedical InnovationsMobile Health

How Technology-Enabled Communications Drive Use of Routine Services and Revenue

April 5, 2018

Off-Label Drug Promotion and the First Amendment

November 4, 2011
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?