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Reason the cost of health care is reached a staggering two point seven trillion dollars per year here is that.
Health consumers just don't know what they're paying for you can only have competition and price reductions if there's cost transparency.
We're really don't have that in our country but our next guest is trying to change that.
Doctor -- collateralized -- -- founder and CEO and he's come up with a solution some sensible.
And simple that WellPoint the nation's largest health benefits companies just announced a new partnership with his company doctor -- Joins us now congratulations on the partnership about which war.
In a bit of -- first -- first of all you say.
And this is pretty -- in the prices the price of health care and the quality of health care don't match up there's actually no correlation.
Between the two can you prove that.
Yeah thank you -- for inviting me we there's very little correlation very little evidence and health care.
Between price and quality and this is because if you think about its industry has been completely opaque and there's complete asymmetry of information between the physicians and the patients.
And nobody really was used to up until now to pay out of pocket.
By the way isn't as they don't know what we're looking at right now just -- -- screen.
Is the price of health care -- particularly pregnancy and delivery in Chicago.
And it's extraordinary that the hospitals with the worst quality ratings were actually the most expensive.
Yeah isn't that aggravating and if you really think about it what other industry you see a situation in which -- You go -- you pay more for a -- quality product that just doesn't make sense like.
Many other things in health care but the biggest problem in health care up until now has been that there's absolutely no sensitivity on the side of the consumer.
What they're buying they would really walk into an office -- myself -- Trained physician I remember people would walk into my office and they was somebody else's credit card and -- -- I was incentivized to provide more details about trying to as a doctor.
Let me make sure right clarified nobody provides back here in this country and this is just incentives are -- -- how -- the wrong way and consumer.
I understand and they're there are matters of degree but until the customer becomes aware of the price of the product.
You're not gonna have that -- I must admit I'm guilty by the -- my wife was in the hospital for quite awhile.
I thought I actually took a look at that instead of just immediately passing it onto the insurance company which I usually do.
I actually looked all the details I found out that this was Cornell by the way big hospital here in New York they charged -- 27000.
Dollars for ten physical therapy sessions each session only lasted about an -- so that's 2700.
Therapy session -- to come up with these.
Yeah and it's interesting I mean we don't know how they come up with those prices the consumer -- and now when the consumer gets hit by a bill.
Paying out of pocket at one point wholly surprising -- that they have.
Absolutely no idea what did you pay for it's the example I love to uses is like if -- walking into a supermarket now.
You go and buy cereals.
And you have no idea of the difference all the serious -- -- you don't get asked to -- -- until six months after that then you get ability don't understand.
OK I think I think we need to -- -- -- for -- -- given -- got to focus on this deal with WellPoint because.
Now you have -- deal with one of the biggest insurers in the world how are they gonna use your service for.
For kind of lifting the veil on some of these prices how are they gonna incorporate that into what they do.
We are extremely honored to have the -- to work with WellPoint WellPoint is working with us to establish referenced based benefits -- Which is a new form of benefit that pretty much in guaranty savings on cost.
To make a long story short after an analysis of prices in a certain area.
We with -- WellPoint establish a price point which guarantees a enormous amount of providers out of high quality below that price and and you'll have access to those physicians at no cost to yourself.
If you decide -- could go above that price then you have to pay out of pocket.
So it's a way -- of empowering the consumer enabling choice offering the best service it's one of those rare situations in which is a win win win for everybody so.
Once the consumer sees the difference in prices and realize they can benefit from -- they will pursue.
The lower price I'm just curious and this is gonna be the last question is as we go into a new regime.
There are some concerns that the choice on the part of the consumer will be limited does that affect your deal with WellPoint and anyway how do you incorporate the new changes of obamacare into what -- doing.
Here we don't get impacted at all by Obama care because we're targeting employee errors that are paying for the service sent.
Ended the beauty of what we're offering is actually we expand on the network we allow you to have the choice of what you want we just present you with the facts on.
And we present you with the best options and we educate you to pick the best choice for the near the site.
You decided you decide how much you want to pay for something you decide where you wanna go we actually create any real market in an industry that that hasn't had it up until now.
Wonderful did the best ideas are usually the simplest and indeed this is a simple eloquence solution to the -- doctor Geovany.
-- like -- -- with his new deal -- WellPoint congratulations.
You deserve -- thank you very much.
Thank you for inviting it's a pleasure being here absolutely.
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