Online tool allows Minnesota patients to weigh cost, perks

The Web site offers comparison shopping for health services based on price and packaging. But critics say its usefulness may be limited.

By Pamela Lewis Dolan, AMNews staff. April 14, 2008.

The founders of a consumer-driven health plan now owned by UnitedHealth Group are back with a concept they believe will further aid their goal of medical cost containment.

Carol, a Web site launched in January, allows consumers to plug in a specific health need, then see a list of prices and packages offered by various hospitals and physicians. The site, whose name the company says refers to an idealized relative or friend, also has consumer ratings of hospitals and doctors (www.carol.com).

Some analysts have compared Carol to online travel sites that allow users to see fees and perks of various hotels and flights before booking. As it turned out, just weeks after Carol launched, Dept. of Health and Human Service Secretary Michael Leavitt called for a "Travelocity-type" site where patients could compare prices and quality information. Leavitt's office confirmed that he did not know about Carol's launch at the time of that speech but did not respond to requests to comment on the site.

Carol's founders include Tony Miller, co-founder and former chief executive officer of Definity Health, one of the first companies to offer consumer-driven health plans such as health savings accounts. United bought Definity, its fellow Minneapolis-area company, in December 2004. Miller then formed Lemhi Ventures, which put $25 million into the startup of Carol. For now, Carol's reach extends only to the Minneapolis-St. Paul vicinity, though the company says talks are under way with physicians and hospitals in Seattle and Cincinnati to offer services there.