H.R.267 - Health Care Prices Revealed and Information to Consumers Explained Transparency Act; Health Care PRICE Transparency Act (119th Congress)
Summary
H.R.267, the "Health Care Prices Revealed and Information to Consumers Explained Transparency Act" or the "Health Care PRICE Transparency Act," aims to amend the Public Health Service Act to enhance price transparency in healthcare. The bill mandates hospitals to provide clear, accessible information on standard charges for items and services, including gross charges, negotiated rates, and discounted cash prices. It also requires insurers to disclose in-network provider rates, out-of-network allowed amounts, and negotiated rates for prescription drugs.
Expected Effects
The likely effect of this bill is increased consumer awareness of healthcare costs, potentially leading to more informed decisions about medical care. This could foster competition among providers and insurers, driving down prices and improving affordability. The bill also aims to empower individuals to better understand their cost-sharing responsibilities and make informed choices about their healthcare plans.
Potential Benefits
- Increased price transparency allows consumers to compare costs across different hospitals and insurers.
- Consumers can make more informed decisions about healthcare services, potentially reducing out-of-pocket expenses.
- The requirement for hospitals to provide discounted cash prices may benefit uninsured or underinsured individuals.
- The bill promotes competition among healthcare providers, potentially leading to lower prices and better quality of care.
- Standardized data formats facilitate the development of consumer-friendly tools for comparing healthcare costs.
Potential Disadvantages
- The increased administrative burden on hospitals and insurers to comply with the new transparency requirements may lead to higher costs.
- The complexity of healthcare pricing may make it difficult for consumers to fully understand the disclosed information.
- Hospitals may be incentivized to raise their initial charges to offset negotiated discounts, potentially negating the benefits of transparency.
- The bill does not address the underlying drivers of high healthcare costs, such as pharmaceutical prices and administrative overhead.
- There may be challenges in accurately estimating out-of-network costs due to the variability in provider billing practices.
Constitutional Alignment
The bill aligns with the general welfare clause of the U.S. Constitution, which empowers Congress to enact laws that promote the well-being of the population. By increasing transparency in healthcare pricing, the bill aims to improve access to affordable medical care, contributing to the overall health and welfare of the American people. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).