New rules require insurers, hospitals to disclose health costs
WASHINGTON — New rules from the Trump administration on Friday would require insurers and hospitals to disclose up front the actual prices for common tests and procedures to promote competition and push down costs.
“This shadowy system has to change,” Health and Human Services Secretary Alex Azar said. “The patient has to be in control.”
But the sweeping changes face stiff pushback from the health care industry and a coalition of major hospital groups quickly announced that hospitals will sue to block the changes.
A final rule would apply to hospitals and a proposed regulation would apply to insurance plans.
Officials say the rules would shine a spotlight on the confusing maze of health care prices, allowing informed patients to find quality services at the lowest cost. Prices for an MRI scan for example can vary by hundreds of dollars depending on where it’s done.
Insurers would have to create individualized estimates of what patients would owe out-of-pocket due to deductibles and co-payments.
Insurance companies and hospitals say the push for disclosure goes too far. They say the government would force them to publicly disclose rates they negotiate as part of private contracts normally beyond the purview of authorities.
Insurers also contend the plan could prompt providers that are accepting a bargain to try to bid up what they charge if others are getting more. But Azar argued transparency does not lead to higher prices in any other area of the economy.
Ricardo Alonso-Zaldivar is an Associated Press writer.