CIGNA plans this spring to launch a system that provides actual cost and benefit information for its members prior to them seeking treatment.

The CIGNA Cost of Care Estimator is new technology designed to inform patients and health care professionals of the total cost to be charged for a specific medical service based on the individual’s specific CIGNA health plan.

Philadelphia, Pa.-based CIGNA says the Estimator’s real-time cost estimates will provide information on the portions of the bill to be paid by the CIGNA health plan, as well as the policyholder’s liability, including out-of-pocket costs due to co-insurance or co-pays, or their flexible spending accounts, health reimbursement arrangements and health savings accounts.

By providing itemized cost estimates and explaining the sources of payment, based on the individual’s specific plan, the CIGNA Cost of Care Estimator will help people understand their benefits and how much they owe for specific services, the company said. It will also serve as the basis of pre-care financial discussions in order to help avoid after-the-fact financial surprises, the company added.

The itemized cost estimate is generated by the proprietary Thomson Reuter treatment cost calculation tool and backed by its analytic and predictive modeling expertise, the company said.

“Every other service industry provides estimates of cost prior to service – for the first time we are systematically trying to do this for health care,” said Jeffrey Kang, CIGNA’s chief medical officer. “From the customer perspective we are helping them make informed choices prior to service and avoiding potential ‘sticker shock.’ From the physician’s perspective, we are reducing the risk of bad debt because the individual is informed prior to service. Overall, this will improve the doctor-patient relationship and allow them to focus on the more important goal of health improvement.”

The launch of the Estimator tool follows the 2008 launch of CIGNA Care Connections, the health service company’s award-winning online physician, hospital and care decision-support capability that integrates health information, quality information, cost of care, and questions to ask a doctor using simple, symptom-based searches.