Edmund Haislmaier
Rules exist to be followed, not ignored. Or at least, that’s what most people think. But in many cases, hospitals and insurers haven’t been following the rules—and the government has been letting them get away with it.
During Trump’s first term, the administration pursued health care price transparency regulations. But under Biden, the administration didn’t do much to implement or enforce those rules.
Those price transparency regulations implement provisions enacted by Congress in 2010. There continues to be substantial bipartisan support in Congress for requiring public disclosure of the costs of medical services. In December 2023, the House of Representatives voted 320-71 to pass legislation that included additional price transparency provisions (though the Senate never acted on that bill).
Now, President Trump is putting health care price transparency back on the agenda. Recently, he ordered executive agencies to step up implementation and enforcement of these transparency regulations. This means non-compliant hospitals and insurers may actually be forced to follow the existing rules requiring public disclosure of medical services’ costs.
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This is a positive change—one that Congress should reinforce legislatively. But Congress should also build on this change by creating incentives to ensure that price transparency ultimately leads to patient savings.
In theory, by requiring medical providers and insurers to make prices public, the government will enable patients to shop for care—creating competition that will put downward pressure on prices.
Yet making this pricing information publicly available is one thing; patients actually using that information when making decisions is another thing entirely.
Not only that, but price transparency directly challenges entrenched health care business models, which center around opaque financial arrangements and hidden cross-subsidies.
Because of this, any further legislation requiring health care price disclosure should also incentivize patients to actually use that information in decision making, » Read More
https://www.heritage.org/health-care-reform/commentary/health-care-price-transparency-lets-reward-patients-shopping