VANESSA FUHRMANS (anchor): Aetna was one of the first insurers to disclose what doctors in its networks get paid for their services, giving consumers more information to comparison shop. Just this week, the company unveiled a more comprehensive cost disclosure plan.

Joining me now to talk about greater price transparency and how it's been affecting his business is Ron Williams, the CEO of Aetna. Ron, thank you very much for joining us.

RON WILLIAMS (Aetna Chairman and CEO): Well, it's a pleasure to be here, and thank you for inviting me.

FUHRMANS: What's the reason for all this price-greater price transparency now? Why are we seeing these tools come on the market now?

WILLIAMS: I think the reason we're seeing these tools is that really our members and patients want to know, that as health care consumers are really being asked to participate more in health care both financially as well as in their own treatment, they really want to understand the financial expense they will incur as well as to learn more information about the quality of care that's being delivered.

Our most recent announcement, which we're very excited about, really gives them information about 30 procedures and the cost of those procedures in different settings, whether it's in an ambulatory out-patient center or a hospital.

FUHRMANS: So, are consumers actually using this information? Can you tell whether they're using it to make decisions?

WILLIAMS: Yes. We have at Aetna something we call our Aetna Navigator, which is what all of our members have access to. And what they do is they log into a personal portal with a secure password, and what we're seeing is a very large percentage of our members are using this Web portal to get this type of information.

So we think as consumers work with cars and other purchases they make, they're becoming quite comfortable using the Internet to get this kind of information.

FUHRMANS: Awhile back, Aetna actually started revealing the actual negotiated rates that it pays doctors. Are you surprised that more insurers haven't followed you in that regard?

WILLIAMS: Yes. I would say we have been very surprised. I think that when we talk to consumers and to employers and unions who sponsor these plans, they've been very clear that they want this information available to their members. And we've been very surprised that others have not actually provided the member the ability to see the rate that they will pay for a service before they actually have to have the service done.

FUHRMANS: A lot of providers bristle at being measured or compared by health insurers. How have you found providers reacting to your efforts?

WILLIAMS: Well, I think what we've tried to do is really make it a collaborative process. We've shared the metrics that we've used. We've taken feedback and guidance. They've given us some great suggestions. And we find that some are quite comfortable with it and there are some who do have some concerns.

But we think that there's an opportunity to really continue to improve that process and that, like everything else, over time, we're all going to be measured in terms of how we do against whatever the appropriate standard is.

FUHRMANS: Do you find they're reacting in that regard. Is it injecting actual competition into the market?

WILLIAMS: I would say that that's probably a longer term issue. We do find that many physicians who are not doing well in certain measures--and I would point out that these are not Aetna's measures; these are the measures that are selected by their own specialty society and other independent groups--are concerned and do try to understand what they need to do in order to perform better.

FUHRMANS: A lot of people assume that higher costs in health care mean actually higher quality. How are you providing them the tools that allow people to pick not only the more cost-efficient or cheaper doctor but also the higher quality one?

WILLIAMS: Well, I would agree that it's very important to understand that cost is only one of the factors. And one of the things that we've done is really build a network composed of physicians in which we look at both their costs as well as their clinical efficiency. And we think that this is all one of the things that members should look at.

I think a lot of it has to do also with the seriousness or the nature of the procedure. If it's a routine, dermatological procedure that you had before and you're quite comfortable with, you might pay more attention to cost. If it's a more serious issue that has implications, cost and quality need to be balanced. But all of it really needs to be considered in consultation with your physician and other medical experts.

FUHRMANS: Are you finding that these tools are actually helping you win more business or secure more contracts with employers? Are they paying attention to this?

WILLIAMS: Yes. I believe that employers really are very concerned about making certain that their members have the tools to be able to navigate the health care system.

What we've done, and all the tools we've built, have really been at the request of our customers. And so for Aetna our secret sauce in how we're growing profitably in the marketplace is by listening to our customers and building tools around transparency and really helping the consumer be a much better consumer of health care services.

FUHRMANS: Thank you, Ron, for joining us.

WILLIAMS: It's a pleasure to be here.

FUHRMANS: I'm Vanessa Fuhrmans with The Wall Street Journal.