In a move that will send shockwaves across the $3.5 trillion US healthcare industry, on Friday the Trump administration unveiled a plan that would – for the first time – force hospitals and insurers to disclose their secret negotiated rates, the WSJ reported.
In hopes of bringing some transparency and openness to a pathologically opaque industry, one which many have blamed for being behind the explosion in US underfunded liabilities to more than $100 trillion, administration officials said the final rule will compel hospitals in 2021 to publicize the rates they negotiate with individual insurers for all services, including drugs, supplies, facility fees and care by doctors who work for the facility. The White House would also propose extending the disclosure requirement to the $670 billion health-insurance industry. Insurance companies and group health plans that cover employees would have to disclose negotiated rates, as well as previously paid rates for out-of-network treatment, in computer-searchable file formats.
As the WSJ notes, the proposal covering insurers is the newest part of the price-disclosure initiative, and would include the private-employer market, where about 158 million people get their health insurance. Insurers and group health plans would have to put the negotiated rates into a file that third-party developers could incorporate into shopping tools. As with hospitals, insurers will have to create a web-based tool for beneficiaries that discloses the list price, the negotiated rate, cost sharing, and the amount left on a plan deductible, as well as allowable out-of-network rates.
The requirements, which are more far-reaching than industry leaders had expected, could upend commercial health-care markets, which are rife with purposefully complex systems of hidden charges and secret discounts which enable the fleecing of either end users or chronically underfunded government healthcare programs. The price-disclosure initiative has become a cornerstone of the president’s 2020 re-election health strategy, despite threats of legal action from industry.
“Right now there is too much arbitrage in the system,” a senior administration official said in an interview Thursday with The Wall Street Journal. “There are a ton of vested interests who will oppose this. We expect to get sued. We’re really goring people’s oxes.”
Hospitals and insurers typically treat specific prices for medical services as closely held secrets, with contracts between the insurers and hospital systems generally bound by confidentiality agreements. Policy makers, employers and patients are often unable to see clearly which hospital systems and doctor practices are driving high costs.
Ironically just a few days ago we showed why “US Healthcare Costs Are Exploding“, and the primary culprit was soaring insurance and medical care service fees. If there is one thing that could potentially put a dent in this exponential surge, it is the elimination of all the various secret price deals and arrangements.
Why is transaprency good? Because as studies have shown, consumers are often required to pay more out of pocket when they don’t have the price information they need to comparison shop. Employer health-plan deductibles are outpacing wage growth and have risen to an average $1,655 for a single plan, according to a September survey by the Kaiser Family Foundation. Workers on average pay $6,015 toward the cost of their coverage.
Taken together, the WSJ notes, “the price-disclosure initiatives could reshape the $3.5 trillion health-care industry.”
The good news: the much needed transparency finally may bring some – literal – price discovery to what has traditionally been the most opaque, and lucrative, sector for the aging and chronically obese US population. The bad news: as Trump is going against trillions in vested interests, expect even more “whistleblowers” to emerge from the sector that has chronically been the biggest lobbyist of Washington…
… doing their best to bring the president down.
Meanwhile, as Americans lament soaring prices of, well, everything, after shelter and rent costs, the second biggest drain of US household income and savings is insurance premiums.
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What? You mean the collusion between the insurance and medical mafia’s has to be exposed?
What will they think of next?
If Trump does nothing else, this would make his election worth it. A wall would be nice though.
DHS Confirms There Is No New Border Wall Yet
Trump.
Right. He only repaired existing wall.
trump is doing the best he can–
you guys who are abandoning him are the political equivalent of the mgtow movement who would rather watch porn & practice their stroke b/c a woman has hurt their feelings —
Tampa.
Keep trying, someday you might convince yourself you haven’t been flim flammed.
To the Never Trumpers who harp continuously on his lack of progress toward draining the swamp: How do you eat an elephant?
One bite at a time.
Superman he ain’t, but he’s trying against evil forces.
Oh, and Epstein didn’t kill himself.
We heard that exact same excuse by Obama supporters when Obama was president.
To conflate the actual policies and actions of each is remarkably stupid. Insinuating they will have them same socio-culture effect is pure absurdity. Remember that, when it’s Tranny Reading Hour at your child’s school.
otto..
udder bullshit. It’s tranny reading hour at your childs school right now with a Republican Pres. and senate and 2 years ago a house. But at least he’s not her, right.
Obama was obviously tasked with Tranny superimposition. He did a fabulous job. It is my understanding Trump has rolled much back, full bitch slap in the Millitary. Can the man reverse it all in short order?
Is Trump the selected yang to the last yin in Cabal dialectic? You only suspect, you do not know.
And even if he is, he is breathing life into the right quarters.
Paul.
So he may possibly open up some pricing while implementing the Trump/Barr domestic Pre-Crime directive on the 2nd of January.
The Deep State made him do it.
But hey, at least he’s not Hillary, right?
it’s hard to remember that your objective is to drain the swamp when you’re up to your ass in alligators–
He hasn’t gotten rid of any swamp creature that he has not replaced with another. Trump is a bait and switch artist.
Wow. Good first step.
Got to be in danger now. Damn, big guns.
And Donkey, that’s Brian Johnson. The best lead singer for AC/DC by a landslide. 🙂
How soon before some judge somewhere blocks it?
Healthcare won’t get fixed. This is likely just a warning shot shakedown to let the hospitals know they need to step up their political donations for 2020. Art of the deal, baby.
How come this article hasn’t generated 200+ comments? MyGirl, AOC and (I can’t think of the person right now) alone could generate 150+ comments all by themselves concerning this topic.
Daughter has been throwing up every hour since midnight, and the kids have been sick all week. I’m worn out.
Hope it’s a simple flu and she feels better soon.
Think so? They passed it to each other and during a week of critical deadlines. Thanks for the well wishes.
Those who bash and hate Trump will never have their minds changed. Like the democrats who rushed to defend the gang MS13 after Trump called them animals, he could cure cancer and suddenly cancer would become a great boon to those who hate Trump. So, Donkey, the answer to your question about why I’m not bothering to comment is that no matter what I said, on a comment thread with the usual contingency of anti-Trumpers, there’s nothing to say that hasn’t been said before and no one is going to change any minds so why bother?
Maybe that OR maybe because everyone agrees this is great news?
Better go back and re-read those comments…
He hasn’t cured cancer. He hasn’t done a lot of things. What he has done is not leave Syria but rather went back in and took their oil. then to please Elon Musk he took Bolivia’s huge deposits of Lithium and cause tesla stock to soar. He also had Barr make domestic Pre-Crime effective Jan. 2. So I guess he has indeed done quite a lot.
Plans, proposals, initiatives….WTF! It isn’t that difficult to do. It’s already been done.
https://surgerycenterok.com/pricing/
The system we have is corrupt to the core. And that includes the corruption of the insurers, administrators, many doctors and, oftentimes, the patient.
Tear it down. Start over again.
Pick any healthcare ETF and pull up the stock chart. Many hitting new highs today. The market knows this is all bluster and bullshit.
TC.
Same thing happened to Tesla stock after Trump stole Bolivia’s enormous lithium deposits earlier this week.