Price transparency in health care would save money for Americans | IN 60 SECONDS

Price transparency in health care would save money for Americans | IN 60 SECONDS


Health care in America is expensive in
part because consumers do not play the same role that they do in other sectors.
Prices are high, and patients get many services that will not improve their
health. Consumers will be able to shop for non-emergency medical care only when
it is easy to compare prices on an apples-to-apples basis. In today’s
complex and opaque market, that’s not possible. The federal government is the
only entity with the reach and capacity to unlock pricing for consumers. That will
require two steps: First, the government should establish a required pricing list
for common interventions. The key is standardization to ensure comparability
across competing suppliers. Second, Congress should require insurance plans
to pay for all out-of-network services on the pricing list at their average
payments for those services. Consumers would get to keep the savings when
getting care with prices below the amounts paid by the insurers. These steps
would make it easy for consumers to shop for services and thus would encourage
providers to set their prices as low as possible. Is it possible for consumers to
shop for medical services under the right circumstances? Let us know in our
poll. Also, let us know what other topics you’d like our scholars to cover in 60
seconds, and be sure to like and subscribe for more research and videos
from AEI.

Leave a Reply

Your email address will not be published. Required fields are marked *