Executive order requires hospital transparency on costs

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The Center Square

Increased transparency will prevent patients from receiving “surprise medical bills” they can’t afford or prepare to save for, advocates argue, and help avoid paying unexpected excessive charges from out-of-network providers. Knowing costs ahead of time will help patients find the best price for the healthcare services to best fit their personal healthcare needs and financial situations.

Opponents of the executive order argue doing so will interfere with hospitals’ ability to negotiate with providers and could actually force prices higher.

A range of diverse advocacy groups are lauding the latest Executive Order signed by President Donald Trump that requires hospitals to publicly disclose what patients and insurers actually pay for services in an easy-to-read and accessible format – before they receive care.

“Lack of transparency contributes to soaring costs, suppressed competition, and lower quality,” the Trump administration said in announcing the order.

“We should also require drug companies, insurance companies, and hospitals to disclose real prices to foster competition and bring costs down,” Trump said when announcing the signed order.

The order directs the Department of Health and Human Services (HHS) to begin the process of making information on out-of-pocket spending more readily available to patients before they receive care.

“Patients face wide variations in prices, often for the same services, due to a lack of transparency,” the White House news release said.