Thanks to a new federal rule that mandates transparency in hospital prices, patients can now take cost into full consideration when choosing a treatment facility. The rule requires hospitals to post prices for each service they offer in public, and they must now break down these prices according to components and procedures. With full information into how much these services cost, people better understand where their money is going.
This rule, implemented by the Trump administration, is expected to take effect in January 2021. It was also made possible by Cynthia Fisher, the founder and chairman of PatientRightsAdvocate.org. She has lobbied for more transparency in the wake of exorbitant medical bills. Hearing the many stories by outraged patients who have had to pay enormous sums for necessary procedures, Fisher was moved to call for more concrete and comprehensive action.
How the New Rule Will Lower Costs
Transparent hospital prices are expected to drive down costs, especially in hospital systems that hide prices. Under this new scheme, people can now compare prices and determine which facility offers the best pricing without compromising patient safety. This change will solve the issue that saw millions of Americans complaining of inflated prices on medical procedures. The transparent pricing system forces hospitals to reveal hidden costs that often give people sticker shock, allowing patients to stay away from $75,000 knee replacements and opt for the more affordable $15,000 procedure instead.
With this new ruling, employers and individuals can save tens of thousands of dollars on medical procedures, allowing them to funnel the money into other expenses. It may also drive the healthcare industry to offer more affordable pricing to stay competitive, as people are invested in getting better healthcare at the lowest possible price.
How More Affordable Hospitals Will Benefit
Since high-end hospitals and surgical centers will be more inclined to lower their prices, people may assume that more affordable hospitals will slightly raise their prices. However, with more competition and publicly displayed prices, hospitals will now have to contend with one another to retain their patient base. Meanwhile, patients of high-price hospitals will see that they can get the same procedure with the same quality of care and expertise at lower prices, benefitting the more affordable hospitals.
More competition is always best for consumers, as they have more control over where to spend their hard-earned money. It also means they have more insight into every procedure, allowing them to choose the option that best fits their needs.
How Transparent Pricing Affects Patients’ Decision-Making
Knowing the full prices of medical procedures allows patients to shop around and compare quotes, ensuring that they don’t sacrifice their safety for the lowest possible price while also guaranteeing that they aren’t overpaying. Now that patients are aware of the price variations for many surgeries, scans, and other processes, they can ensure that they won’t be price-gouged. Surprise bills have caused many Americans to go nearly bankrupt with medical expenses, making the new ruling a welcome change.
Conclusion
Now that hospitals are required to disclose the price breakdown of their medical procedures, patients can now have more freedom to pursue healthcare that won’t make them insolvent. Price transparency is always in favor of consumers, and with this new rule, American patients now have wider access to more affordable procedures.
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