The Trump administration on Friday unveiled new rules to require increased disclosure of health care prices, in a move officials said would drive down costs by increasing competition.
One regulation would require hospitals to provide a consumer-friendly online page where prices are listed for 300 common procedures like X-rays and lab tests. A second regulation would require insurers to provide an online tool where people could compare their out-of-pocket costs at different medical providers before receiving treatment.
Got it?
What does an X-ray cost?
But… what does the hospital charge the insurance company versus what it would accept if the individual paid out-of-pocket?
As always, the Executive Order is a start but the details make all the difference.
Insurers have argued that price transparency could actually drive prices higher if low-cost hospitals can see that competitors are getting higher prices, and seek to raise them. Azar called that argument a “canard” and said in every other industry, price competition drives prices lower, not higher.
The same complaint BigPharma makes about the EO calling for opening of drug prices.
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