In: Finance
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.
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
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:
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.