President Donald Trump signed an executive order June 24 calling for more price transparency in healthcare. The aim of the proposal is to drive down healthcare costs for consumers.
While most groups agreed with the intent of the plan, some felt it would have unintended consequences.
The Federation of American Hospitals was concerned the move would cause prices to increase: "If implementing regulations take the wrong course … it may undercut the way insurers pay for hospital services resulting in higher spending. The Federal Trade Commission has said that spending would likely increase if hospital-insurer payment arrangements were published."
The American Hospital Association voiced similar concerns about negotiated rates: "While details are being developed, it's important to note that hospitals already provide consumers with information on pricing, but publicly posting privately negotiated rates could, in fact, undermine the competitive forces of private market dynamics, and result in increased prices," AHA President and CEO Rick Pollack said in a prepared statement.
America's Health Insurance Plans echoed these concerns and called instead for more patient education. "Consumers and patients can get meaningful help and a view into the costs they will pay for care through tools offered by health insurance providers, such as cost calculators," AHIP President and CEO Matt Eyles said in a statement. "Consumers also have access to regular reports on where they are in meeting their deductibles and limits on out of pocket costs. We can work together with doctors, hospitals, employers, and other healthcare leaders to ensure that consumers know what information is available to them, and how to use that information to make decisions that are right for them and their families."
The American College of Physicians voiced its support for the proposal. "As a physician, I've seen how important it is to protect patients from high, unexpected out-of-pocket costs. Healthcare expenses should never be used as the sole criterion for choosing a physician, other healthcare professional, or healthcare service," ACP President Robert McLean, MD, said in an emailed statement. Dr. McLean's only concern was the potential administrative burden. "While ACP supports the concept of the executive order, it should be implemented in a way that does not impose impracticable or excessive administrative burdens on clinicians, practices, and healthcare facilities in disclosing price data to patients," he said.
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