Bipartisan legislation introduced on Tuesday by U.S. Rep. Michael Burgess (R-TX) would use transparency surrounding the costs of health care services for patients to help rein in spending.
The Health Care Price Transparency Promotion Act, introduced by Burgess and U.S. Rep. Gene Green (D-TX), would direct states to establish laws requiring public disclosure of information about hospital charges.
The goal of the bill is to provide consumers with information about out-of-pocket costs for health care services to inform their decisions.
“At no point in the course of care should patients ever be left in the dark, lacking critical information to make the most informed decision about treatment options, particularly when it comes to cost,” Burgess said. “Our current health insurance system insulates patients from the true cost of health services. This legislation takes the first step towards ensuring true price transparency in the health care market.”
The bill would also call for research into the types of cost information that individuals use in making healthcare decisions, how useful information varies according to an individual’s health insurance coverage and the best ways to distribute information.
“The fact that patients rarely know what health care services cost until after they’ve received them and the wide variety in pricing, make the health care market uniquely difficult to navigate,” Green said. “Greater transparency around prices of health care services will enable patients and families to choose lower-cost, high-value care and promote competition in the market. This bill is an important first step towards empowering patients and advancing value-based care.”
Health care spending in the United States grew 2.9 percent in 2013 and 5.3 percent in 2014, totaling $3 trillion, or $9,523 per person, according to the Centers for Medicare and Medicaid Services.