Healthcare cost transparency has become a large issue in the ongoing debate of healthcare reform in the United States. A recent article by U.S PIRG calls attention to the potential for significant cost savings through increased transparency. Estimating the measures of healthcare transparency could save the U.S. Healthcare system $1 trillion annually.
The Consequences of Concealed Healthcare Costs
The lack of healthcare transparency fuels administrative costs, inflated charges, and fraud. These issues combined represent nearly 25% of Total U.S. healthcare spending. Due to this lack of transparency, costs have risen, causing it to be difficult for patients to make the right informed choices. Many individuals are left blindsided after hospital visits when receiving their bills and being left helpless to find affordable care options.
Why We Need Healthcare Price Transparency
To fix these transparency problems, the U.S. PIRG and a group of experts, including business leaders, economists, and professors, are supporting a new law called the Health Care PRICE Transparency Act 2.0. This new law would ensure that current price transparency rules are followed while requiring hospitals and insurance companies to share clear upfront prices, such as cash discounts and rates they’ve agreed on with insurers.
The Benefits for Patients and Employers
By making healthcare prices clear and concise to understand patients would be able to compare costs and make a decision that is best fit for them, while saving money in the process. There are benefits for employers too because they often pay a big part of their workers’ healthcare, spending less, and getting better deals.
Challenges and Moving Forward
Even though there are several rules that require insurance companies and hospitals to share pricing information, there are often cases where they don't. About 21% of hospitals are fully following and doing what the law requires. To really see the benefits of price transparency, laws such as PRICE Transparency 2.0. need to put it into place and take full effect. Pricing information should be accessible to all patients and employers.
