International Federation of Health Plans

2012 Comparative Price Report

Variation in Medical and Hospital Prices by Country International Federation of Health Plans

The International Federation of Health Plans was founded in 1968 by a small group of health plan industry leaders. It is now the leading global network in the industry, with more than one hundred member companies from twenty-five countries.

Federation member plans meet regularly to share information about health care financing and health care delivery in their home countries.

2 2012 Survey Overview

This year’s survey includes new prescription drug prices in response to increased interest in this area from plans in many countries. We have also added three new non-drug items to our survey: hip prosthesis, knee replacement, and colonoscopy. Prices for each country are submitted by participating federation member plans, and are drawn from different sectors: • Prices for Canada, New Zealand, Switzerland, and the United Kingdom are from the public sector, with data provided by one health plan in each country. • Prices for Australia, Chile, the Netherlands, Spain, and South Africa are from the private sector and represent prices paid by one private health plan in each country. • Prices for France and Argentina are a blend of public and private sector prices with the data provided by one health plan in each country. • Prices for the United States are calculated from a database with over 100 million paid claims that reflect prices negotiated between thousands of providers and almost a hundred health plans.

Comparisons across different countries are complicated by differences in sectors, fee schedules, and systems. In addition, for some countries a single plan’s prices are real for that plan but may not be representative of prices paid by other plans in that market. The U.S. numbers are based on an aggregate of over a 100 million paid claims across multiple payers.

3 2012 Scanning and Imaging: Angiogram

$2,430

$914

$378 $218 $235 $264 $125 $173 $35

Canada Spain Switzerland South Africa France Chile United States

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

4 2012 Scanning and Imaging: CT Scan, Abdomen

$1,737

$630

$437 $472 $349 $267 $234 $175 $183 $243 $103 $118 $124

Argentina Spain Canada United France Chile Netherlands New Switzerland South Africa United Kingdom Zealand States

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

5 2012 Scanning and Imaging: CT Scan, Head

$1,672

$566

$300 $310 $328 $252 $175 $183 $192 $119 $124 $82 $138

Argentina Spain Canada United France Chile Netherlands South Africa New Switzerland United Kingdom Zealand States

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

6 2012 Scanning and Imaging: CT Scan, Pelvis

$1,565

$567

$386 $328 $349 $257 $166 $175 $183 $217 $117 $124 $66

Argentina Spain Canada Chile United France Netherlands Switzerland New South Africa United Kingdom Zealand States

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

7 2012 Scanning and Imaging: MRI

$2,871

$1,072 $1,121 $928

$554 $502 $522 $319 $335 $363 $230 $118

Argentina Spain Netherlands United France Chile New Zealand Switzerland South Africa United States Kingdom

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

8 2012 Cost Per Hospital Day

$12,537

$4,287

$1,472 $1,514 $731 $853 $964 $979 $429 $476 $665

Argentina Spain South Africa Netherlands France Chile New Zealand Australia United States

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

9 2012 Total Hospital and Physician Cost: Appendectomy

$29,426

$13,851

$8,156 $5,392 $5,467 $4,221 $4,498 $4,463 $4,782 $3,381 $3,408 $2,245 $953

Argentina Spain South Africa United Chile Netherlands France Switzerland New Australia United Kingdom Zealand States

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

10 2012 Total Hospital and Physician Cost: Normal Delivery

$16,653

$9,775

$6,846 $7,262

$4,039 $3,541 $2,992 $2,386 $2,669 $2,641 $2,035 $2,265 $1,188

Argentina South Africa Spain New Netherlands United Chile France Switzerland Australia United Zealand Kingdom States

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

11 2012 Total Hospital and Physician Cost: C-Section

$26,305

$15,041

$10,566 $10,545

$6,441 $5,186 $5,328 $4,435 $4,717 $3,097 $3,378 $3,449 $1,541

Argentina Spain Chile South Africa United New Switzerland Netherlands France Australia United Kingdom Zealand States

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

12 2012 Total Hospital and Physician Cost: Cataract Surgery

$8,143

$3,738

$2,829 $2,566 $2,418 $2,079 $2,205 $1,867 $1,938 $1,534 $1,139 $564

Argentina United Netherlands Spain France New Zealand South Africa Switzerland Chile United States Kingdom

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

13 2012 Total Hospital and Physician Cost: Knee Replacement Surgery

$52,451

$25,637 $22,421

$14,849 $16,473 $13,466 $11,954 $7,827 $7,833

$3,192

Argentina Spain United Kingdom Switzerland South Africa New Zealand Australia United States

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

14 2012 Total Hospital and Physician Cost: Hip Replacement

$87,987

$40,364

$27,810 $25,061

$14,390 $15,403 $11,889 $13,409 $9,574 $10,927 $11,187 $7,731 $3,365

Argentina Spain Switzerland France Netherlands United Chile New South Africa Australia United Kingdom Zealand States

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

15 2012 Total Hospital and Physician Cost: Bypass Surgery

$150,515

$73,420

$43,230 $46,547 $37,044 $26,432 $22,844 $17,437 $17,729 $12,401 $14,061 $14,117 $8,882

Argentina Chile Netherlands United Spain Switzerland France New South Africa Australia United Kingdom Zealand States

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

16 2012 Total Hospital and Physician Cost: Angioplasty

$61,649

$28,182

$16,533 $13,475 $14,366 $8,911 $9,446 $7,010 $7,564 $5,295 $6,332 $2,851

Argentina Switzerland Netherlands New Zealand France Australia Spain South Africa United United States Kingdom

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

17 2012 Physician Fees: Routine Office Visit

$176

$95

$68

$38 $30 $30 $25

$10 $11

Argentina Spain South Africa France Canada Chile United States

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

18 2012 Physician Fees: Normal Delivery

$5,407

$3,096

$2,397 $1,837

$890 $536 $583 $292 $329 $116 $163

South Africa Argentina Netherlands Spain Canada France Chile Australia United States

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

19 2012 Physician Fees: C-Section

$6,593

$3,676

$2,688

$2,118

$1,084 $838 $938 $606 $428 $193 $216

Argentina South Africa Spain Canada Netherlands France Chile Australia United States

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

20 2012 Physician Fees: Cataract Surgery

$1,839

$1,311

$1,048 $922

$699 $651

$420 $426 $332 $286 $157

Argentina Netherlands South Africa Spain France Canada Chile Australia United States

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

21 2012 Physician Fees: Appendectomy

$2,044

$1,001

$776 $782 $724 $674 $539 $408 $231 $148 $157

Argentina South Africa Spain Canada Netherlands Chile France Australia United States

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

22 2012 Physician Fees: Hip Replacement

$5,196

$2,883 $2,888

$1,992 $1,983

$1,288 $1,088 $697 $748 $761 $461

Argentina Canada Netherlands South Africa Spain France Chile Australia United States

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

23 2012 Drugs: Celebrex

Celebrex is commonly prescribed for pain.

$258

$162 $163

$140 $126 $128 $116

$88

$59 $53

Canada Argentina South Africa United Kingdom France Switzerland Spain United States

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

24 2012 Drugs: Vytorin

Vytorin is commonly prescribed for high cholesterol.

$131

$123 $120

$80 $70 $68

$55

$31

Argentina New Zealand United Kingdom Switzerland Spain United States

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

25 2012 Drugs: Cymbalta

Cymbalta is commonly prescribed for depression, anxiety, and fibromyalgia.

$317

$176

$149

$113

$77 $84 $70 $57 $47 $48

France United Kingdom South Africa Spain Switzerland Argentina Canada United States

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

26 2012 Drugs: Nasonex

Nasonex is commonly prescribed for nasal allergies.

$115

$108 $105

$39

$29 $21 $22 $23 $17 $12

United Kingdom France Spain Argentina South Africa Canada Switzerland United States

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

27 2012 Drugs: Lipitor

Lipitor is commonly prescribed for high cholesterol.

$145

$124

$100

$60

$48 $43 $39

$11 $13 $6

New Zealand South Africa Spain Argentina United Kingdom France Chile United States

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

28 2012 Drugs: Nexium

Nexium is commonly prescribed for acid reflux.

$373

$202 $187

$71 $72

$41 $30 $32 $37 $18 $21

Spain Argentina France United South Africa Chile Switzerland Netherlands United States Kingdom

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

29 2012 Diagnostics: Colonoscopy

$2,627

$1,185

$864 $893 $655 $536 $413

Argentina Switzerland New Zealand United Kingdom United States

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

30 2012 Devices: Hip Prosthesis

$27,497

$12,222 $10,763

$6,895

$3,579 $2,682 $1,516 $1,556

Argentina Chile Spain South Africa Australia United States

USA 25th Percentile Average Price USA 95th Percentile ($ USD)

31 2010 Health Spending as Percent of GDP

17.6%

11.4% 11.4% 11.6% 10.1% 9.6% 9.6% 9.1% 9.5% 8.0% OECD Average

Chile Australia Spain United New Zealand Canada Switzerland France United States Kingdom

Source: OECD Health Spending 2012. Data represents 2010 or most recent year.

32 Country Sources and Notes

Argentina Prices are a weighted average from the public system, the social security system, and a private health plan.

Australia Prices are private sector prices paid by a private health plan.

Canada Prices are public sector prices for the province of Nova Scotia.

Chile Prices are private sector prices paid by a private health plan.

France Prices are a blend of public and private system prices.

Netherlands Prices are private sector prices paid by a private health plan, and incorporate the new DRG system implemented in 2012.

New Zealand Prices are public sector prices based on the fee schedule for one large District Health Board, as well as other national tariff pricing lists.

South Africa Prices are private sector prices paid by a private health plan.

Spain Prices are private sector prices paid by a private health plan.

Switzerland Prices are public sector prices.

33 Country Sources and Notes

United States Prices are calculated from commercial claims data from the Truven (formerly Thomson Reuters) MarketScan Research databases. The MarketScan databases capture person-specific clinical utilization, expenditures, and enrollment from a selection of large employers, health plans, and government and public organizations. The annual medical databases include private sector health data from approximately 100 payers. Claims data was compiled by Deloitte Consulting LLP on behalf of Kaiser Permanente Health Plan. Any opinions or conclusions expressed herein regarding the data are not those of Deloitte Consulting LLP. Because a broad range of prices were available, the national 25th percentile (low), average, and 95th percentile were calculated. Prices represent allowed charges, which are the negotiated rates for which providers receive payment. Allowed charges include both patient cost sharing and health plan payment. Cataract surgery price represents the price for outpatient procedures. The angioplasty and appendectomy prices reflect a blend of inpatient and outpatient prices based on relative utilization in each setting. The patent for Lipitor expired on November 30, 2011. This has an impact on the drug’s unit cost, and data show a rapid drop in volume and a gradual reduction in price for the branded version of this drug throughout 2012. The price in this report was calculated based on the same process as the other drug benchmarks, but incorporated an adjustment factor to reflect the impact on price of patent expiration. Prices may decline further over time, and the utilization of the drugs may also continue to decline as generic substitutes gain market share.

United Kingdom Prices are public sector prices from the National Health Service (NHS) and the British National Formulary drug price listings.

34 List of Federation Member Plans

Argentina Germany Spain Omint Sa De Servicios Krankenversicherung AG Compañia de Seguros Adeslas SA Australia Munich Health Sanitas SA Australian Health Service Alliance Greece Switzerland Australian Health Association Limited Interamerican Life Insurance Company Helsana Versicherungen AG Australian Unity Health Limited Hong Kong Sanitas Krankenversicherung Australia Limited AXA General Insurance Hong Kong Limited Thailand GMHBA Limited BUPA (Asia) Limited BUPA (Thailand) Limited HBF Health Funds Inc Hospitals Contribution Fund of Australia, Limited India United Kingdom Health-Partners MAX BUPA Health Insurance Limited Aria Assistance Group Medibank Private Ireland AXA PPP Healthcare Navy Health Limited VHI Healthcare Limited BUPA NIB Health Funds Limited InterGlobal Insurance Company Italy Police Health Simplyhealth Group Unisalute RT Health Fund Western Provident Association Limited Teachers’ Federation Health Limited Mexico Westfield Contributory Health Scheme Teachers’ Union Health AXA Seguros SA de CV USA Aetna Inc Belgium Netherlands America's Health Insurance Plans Medicover Achmea Health Nationaal Verbond van Socialistiche Mutualiteiten Blue Cross & Blue Shield Association New Zealand Union Nationale des Mutualities Libres (MLOZ) Emblem Foundation Health Plan Health Funds Association of New Zealand Kaiser Foundation Health Plan Inc Canada Southern Cross Healthcare RW2 Enterprise Alberta Blue Cross Plan Union Medical Benefits Society, Limited The Trizetto Group Canassurance Hospital Service Association Nigeria Tufts Health Plan Group Medical Services Total Health Trust Limited UnitedHealth Group Manitoba Blue Cross Medavie Blue Cross Poland Zimbabwe Pacific Blue Cross Signal Iduna Polska Tusa Association of the Healthcare Funders of Zimbabwe Cimas Medical Aid Society Saskatchewan Blue Cross Saudi Arabia The Medical Aid Society of Central Africa BUPA Middle East Chile Premier Service Medical Aid Society Banmedica South Africa China Board of Healthcare Funders of Southern Africa BUPA China Representative Office Bonitas Medical Fund Chartered Accountants (SA) Medical Aid Fund Denmark Discovery Health Medical Scheme Danmark Sygeforsikring La-Health Medical Scheme Danica Pension Forretningsudvikling Medihelp Forenede Gruppeliv A/S Medscheme Holdings Dominican Republic Metropolitan Health Group Ars Humano Polmed France Transmed Malakoff Mederic

35