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In the box below, succinctly explain in no more than 500 words, the objective(s) of the...

In the box below, succinctly explain in no more than 500 words, the objective(s) of the 2019 executive order on Medical Price Transparency and in your own words, where and why it may successful and where and why it may fall short.

Solutions

Expert Solution

President Trump recently issued an Executive Order, Improving Price and Quality Transparency in American Health to Put Patients First, which focuses on price transparency by requiring out-of-pocket costs to be listed by hospitals and other providers. Additionally, it outlines certain actions regulators must take (within designated time frames) to reexamine how existing laws are being applied.

What is covered in Improving Price and Quality Transparency?

The timeline of the main objectives and what they mean for the future of price transparency in healthcare are below:

Within 60 days

  • Hospitals must provide a list of standard charge information for services, supplies and fees billed. The list can either be posted in a public area or a hospital employee can provide the information.
  • Hospitals must also develop a system to update the list regularly. Otherwise, they risk not being compliant with the executive order.

Within 90 days

Healthcare providers, insurance providers, and self-insured group health plans will be asked to comment on how the system is working.

Within 120 days

The Treasury will issue guidance regarding what low-cost preventative care is covered before the deductible is met and still remains HSA compatible. The desired outcome is for medical care that helps maintain the health status of individuals with chronic conditions will be covered.

Within 180 days

Department of Treasury must propose regulations addressing two keys areas:

  1. Allowing certain types of arrangements (such as concierge medicine) to be treated as qualified medical expenses and make them eligible for reimbursement from an FSA, HRA or HSA.
  2. Additionally, the Executive Order seeks guidance that would increase the amount that can be carried over in an FSA.

ADVANTAGES

Building trust

There are some distinct - and obvious - advantages to letting patients know in advance what they are going to have to pay for medical care. In this age of healthcare consumerism, being up front about costs can be good for patient relations. “Price transparency increases the level of customer service and builds trust with patients,” says Andrew Hajde, senior industry adviser with MGMA.

DISADVANTAGES

Allaying suspicion

As logical as all this seems, it’s not as simple as posting prices. For one thing, posted prices apply only to self-paying patients, Good points out. How much patients with insurance pays will depend on their plans. And then there is the fact that you don’t know how much an office visit, for example, will cost until you’ve already seen the patient.


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