U.S. House Passes Lower Costs, More Transparency Act
The Trump executive order requiring hospitals to post their prices and negotiated rates went into effect in 2021. Unfortunately, there has been little to no enforcement of the rule, and only 36% of hospitals are fully compliant.
The US House of Representatives gave Americans a Christmas present by passing stronger price transparency measures for health care providers and insurers. H.R. 5378, known as the Lower Costs, More Transparency Act, passed the House with a vote of 320 to 71. Bipartisan bills are increasingly rare these days—especially in Congress—and the Lower Costs, More Transparency Act passed with significant support from both parties.
The bill provides statutory authority for regulations that had previously been issued by executive order in the Trump Administration. It requires hospitals to annually publish their pricing, including discounted cash prices and negotiated rates. The requirements are also extended to clinical laboratories, ambulatory surgical centers, and image service providers that participate in Medicare.
The Trump executive order requiring hospitals to post their prices and negotiated rates went into effect in 2021. Unfortunately, there has been little to no enforcement of the rule, and only 36% of hospitals are fully compliant.
Individuals working on their personal budgets must look at hard numbers to make decisions about how to allocate their resources. Health care is the same. We cannot start to fix our health care system until we know the hard costs. Having that data will help employers and individuals lower the cost of their health care. It will also prevent billing surprises.
Many states are also seeing the benefits of providing more transparency in health care pricing. Colorado, Texas and Virginia have all enacted price transparency legislation, and Ohio and Wisconsin are considering similar bills. Codifying the requirements in state law gives states the authority to enforce the transparency measures—something the US Department of Health and Human Services is not doing.
Information is vital to decision making, and our health care system cannot be improved until we know what it is actually costing us. Transparency ensures everyone knows where things stand and prevents price gouging and surprise billing. The US House of Representatives took a big step towards getting the transparency Americans need.
Check out ALEC’s Hospital Price Transparency Act, one of our Essential Policy Solutions for 2024, for more information.