>> WELCOME TO NEW HAMPSHIRE'S BUSINESS, I'M FRED KOCUR.
AND HEALTH CARE COSTS IN THE COUNTRY INCREASED 3%.
WHAT DO WE DO ABOUT THAT?
AS ONE COMPANY IN PORTSMOUTH IS TRYING TO DO SOMETHING.
LET'S TAKE A LOOK AT THIS GRAPHIC.
THIS IS THE COMPANY, MY MEDICAL SHOPPER.
IT'S A COST TOOL FOR TYPICAL OUTPATIENT PROCEDURES.
IT USES A VARIETY OF MEDICAL CLAIMS DATA AND IT'S PURCHASED FOR EMPLOYEES USE AND THE COMPANY CLAIMS THAT THE AVERAGE EMPLOYER CAN SAVE ON HEALTH CARE COSTS AND THAT'S PRETTY BIG.
WITH ME TO TALK ABOUT THIS IS THE VICE-PRESIDENT OF MY MEDICAL SHOPPER, CHRIS.
MATRAMELO.
DID I PRONOUNCE THAT RIGHT?
>> YES.
BEFORE I ASK YOU HOW THIS WORKS AND HOW CAN YOU GET INTO THE HEALTH CARE COST THING?
>> OUR FOUNDER WAS A SERIAL TECH ENTREPRENEUR.
HE WAS ON DRIVEN HEALTH PLANS AND HEALTH SAVINGS ACCOUNT AND PAYING FOR HIS MEDICAL ACCOUNTS AND SIX YEARS AGO, A NUCLEAR STRESS TEST.
AND MARK ASKED HOW LONG THAT'S GOING TO COST, LONG STORY SHORT, HE COULDN'T GET AN ANSWER.
HE ASKED EVERYONE HE COULD THINK OF, COULDN'T GET AN ANSWER AND HERE WE ARE.
>> VARIATION BETWEEN COST PROVIDERS EVEN IN ONE GEOGRAPHIC AREA.
>> YEAH.
>> LET'S GO TO THE GRAPHIC, THIS MAKES THE POINT.
HERE ARE THE HIDDEN VARIATIONS IN HEALTH CARE DISCOUNT PRICES AND THIS IS IN THE GREATER PORTSMOUTH AREA WITHIN A 25-MILE RADIUS AND CHRIS, THIS IS AMAZING.
CHEST X-RAY, CHOLESTEROL SCREENING, NUCLEAR STRESS TEST.
YOU CAN SEE THE LOW AND THE HIGH COST AND THE VARIATION AS YOU GO ACROSS THAT GRAPHIC AND THEN MRI, THYROID STIMULATING HORMONE AND ULTRASOUND FOR THE NECK.
JUST, IS THIS ON YOUR WEBSITE OR IS THIS SOMETHING YOU GIVE TO THE BROKERS AND EMPLOYERS?
>> SO, THIS IS PRECISELY THE VARIATIONS AND PRICE THAT WE DISPLAY ON OUR WEBSITE, AND ON OUR USER TOOLS.
>> YEAH.
>> THIS WAS SHOCKING TO US, TOO.
WHEN WE STARTED DIGGING INTO THE PRICE VARIATION.
THESE ARE REFLECTIVE OF THE INSURANCE NEGOTIATED DISCOUNTS.
A LOT OF PEOPLE THINK, OH, I HAVE INSURANCE, THEY GET ME THE BEST PRICE AND THEY DON'T REALIZE THAT THAT PRICE VARIES WHETHER THEY GO TO PROVIDER A OR B.
AND THIS IS SOME OF THE PROCEDURES.
>> AND NATIONWIDE YOU'RE GIVING THIS INFORMATION OUT ACROSS THE COUNTRY.
NOW, HOW DO YOU WORK?
I MEAN, HOW DOES ANYBODY-- YOUR EMPLOYERS ARE THE KEY TARGETS FOR THIS, THIS IS ALL OUTPATIENT PROCEDURES, NOT INPATIENT, RIGHT?
>> MOSTLY OUTPATIENT.
>> IT'S GIVEN TO INSURANCE BROKERS?
>> THAT'S OUR CHANNEL.
>> ACROSS THE COUNTRY?
>> NATIONWIDE.
>> HOW DOES IT WORK?
>> SO, WE WORK WITH REALLY PROGRESSIVE, PROACTIVE CONSULTANTS, ADVISORS, HEALTH BENEFITS AND BROKERS AND THIRD PARTY ADMINISTRATORS WHO ADMINISTER THE CONSUMER-DRIVEN
PLANS AND WE INTEGRATE OUR SOLUTIONS WITH THEM.
WHAT WE DO IS BRING THIS INFORMATION TO EMPLOYERS, IT'S REALLY A THREE-PRONGED APPROACH.
ONE IS MAKING SURE THAT EMPLOYEES HAVE ACCESS TO THIS INFORMATION.
>> RIGHT.
>> SO, AT THE TIME WHEN THEY CAN INFLUENCE A DECISION ABOUT WHERE THEY WOULD GO WHEN THEY'RE IN THEIR DOCTOR'S OFFICE.
THEY CAN TAKE THEIR PHONE OUT OF THEIR POCKET AND A MOBILE APP AND YOU'RE WHAT ARE THE PRICES, YOU'RE GOING TO SEND ME FOR A WRIST X-RAY.
MY WIFE GOT SENT FOR A SERIES OF TESTS DOWN THE HALL.
>> AND YOU PROVIDE FOR QUALITY.
AND EVEN A LOWER COST PROCEDURE, THE QUALITY IS STILL THERE?
>> YOU NEED QUALITY THE SAME TIME YOU'RE LOOKING AT PRICE.
WE KNOW WHEN YOU'RE CHOOSING TO SHOP FOR ANYTHING, YOU CARE ABOUT QUALITY AS WELL AS PRICE AND THAT'S CERTAINLY TRUE IN MEDICINE.
>> WHERE DO YOU COME UP WITH THE DATA TO COME UP WITH COSTS?
>> SO WE LOOK AT A VARIETY OF SOURCES, HUGE DATA SETS OF POST ADJUDICATED CLAIMS DATA.
WE'RE LOOKING AT WHAT INSURANCE COMPANIES AND PARTICIPANTS ACTUALLY PAID FOR THESE PROCEDURES AT EVERY PROVIDER.
>> RIGHT.
>> 41% SAVINGS FOR AN EMPLOYER?
THAT'S PRETTY GOOD.
>> I KNOW, AND WE'RE CONSERVATIVE ON THAT.
IF YOU LOOK AT THE DATA SET THERE ARE MANY EMPLOYERS THAT CAN SAVE MORE THAN THAT.
THAT'S THE OPPORTUNITY.
IF ALL OF THEIR EMPLOYEES COULD SHOP AND DID SHOP FOR THEIR MEDICAL CARE, THEY COULD HAVE SPENT 40% OR 50% LESS THAN THEY SPENT LAST YEAR.
>> WELL, CHRIS AND M