IFHP survey: comparison of international healthcare costs

The International Federation of Health Plans, a group of 100 health funds and insurers across 30 countries, has released its ‘2010 Comparative Price Report’ detailing its annual survey of medical costs per unit. The study is done to help member plans better understand why health care costs are so much higher in some countries than others. Prices for the same medical procedures, tests, scans and treatments vary widely from country to country.

The International Federation of Health Plans, a group of 100 health funds and insurers across 30 countries, has released its ‘2010 Comparative Price Report’ detailing its annual survey of medical costs per unit. The study is done to help member plans better understand why health care costs are so much higher in some countries than others. Prices for the same medical procedures, tests, scans and treatments vary widely from country to country. The survey data showed that, on average, U.S. prices for procedures were once again the highest of those in the 12 countries surveyed for nearly all of the 14 common services and procedures reviewed.

For example, total hospital and physician costs for delivering a baby are $2,147 in Germany, $2,667 in Canada, and an average of $8,435 in the United States. The survey shows that the cost for a hospital stay is $1,679 in Spain, $7,707 in Canada, but these costs can range from an average of $14,427 to $45,902 in the United States.

In addition to providing comparative cost data across the countries, the survey provides information about the wide range of costs being charged in the United States for common services, procedures and drugs. One example from the survey is hip replacement surgery costing $12,737 in the Netherlands, but ranging from a low of $21,247 to a high of $75,369 in the United States.

The differential between unit prices was greatest for surgery. One of the highest differentials was for cataract surgery; the range for cataract surgery ran from $1,667 in Spain to an average of $14,764 in the United States.

Tom Sackville of IFHP says, “As countries around the world look at the impact of their health care systems on their economies, the cost per unit of services, procedures and drugs is a key factor that needs to be understood. The total cost of care in each country is obviously driven very directly by the fees charged by the doctors, hospitals, and drug companies in that country. We hope the release of this updated report on our price survey will be a key step forward in creating a more informed base of knowledge for all our member countries and allow them to better assess the impact of unit prices on the cost of health care.”

The IFHP’s survey covers current 2010 provider fees and drug costs in 12 countries. The 12 countries studied were- Argentina, Australia, Canada, Chile, France, Spain, Switzerland, Germany, Netherlands, New Zealand, United Kingdom and United States. The 14 items examined include angiograms, CT and MRI scans, office visits, newborn deliveries, appendectomies, cataract surgeries, hip replacements, hospital stays, bypass surgeries and angioplasties. Costs for three widely prescribed drugs – Lipitor, Nexium and Plavix – were also reviewed. The data for the report was gathered from IFHP member organizations in each country.