Will New Price Transparency Rules Have an Impact?
In response to President Trump’s June 24, 2019, executive order, the Centers for Medicare & Medicaid Services developed proposed rules that mandate “consumer-friendly” price transparency for hospitals.
Starting January 1 of 2020, hospitals will have to publish price information organized in a standardized way so patients will be able to do an accurate comparison of procedure pricing between hospitals. Hospitals will also be required to post all their payers specific negotiated rates, which are the prices actually paid by insurers, in that same format.
The Trump administration says the rules will increase competition among hospitals and lower healthcare costs for consumers. The CEO of America’s Health Insurance Plans claims, “Publicly disclosing competitively negotiated, proprietary rates will push prices and premiums higher — not lower.”
A recent survey from the Chelko Consulting Group and Worldwide Employee Benefits Network was conducted to gauge employee benefit professionals’ opinions on the potential impact of these rules. Respondents represented employer plan sponsors, benefits advisors, and insurance companies. (more…)
