The Ohio House has passed a key reform that brings hospital price transparency one step closer in the state. This is crucial in empowering patients and reducing the overall cost of care. Transparency is essential in all sectors of the economy and government, especially in healthcare. These reforms align with existing federal laws and enable state enforcement to help lower healthcare costs.
The Affordable Care Act (ACA) mandated hospitals to disclose prices for their services in 2010, but very few hospitals have followed this requirement, leading to significant cost variations for the same services at different hospital facilities. To address this issue, states are taking matters into their own hands by setting their own transparency requirements to ensure enforceability. In Ohio, less than 1 in 5 hospitals are compliant with federal transparency regulations, leading to significant cost variations for patients.
Enforcing price transparency in healthcare will help individuals understand and compare costs, promoting competition in the market. This initiative is crucial for the long-term stability of welfare programs like Medicare and Medicaid. Efforts to bring transparency to healthcare have garnered bipartisan support, showing a rare unity in today’s divided political climate. Healthcare is unique in that consumers often lack price information before receiving services. Making healthcare costs transparent is pivotal in empowering patients and driving down overall care expenses.
The Hospital Price Transparency Act sets out principles that states should adopt when enforcing price transparency laws, which aligns with ALEC’s Essential Policy Solutions for 2024. These reforms protect patients by preventing hospitals that do not comply with transparency laws from sending accounts to debt collection services. The Ohio House’s reforms reflect these principles and set a positive example for other states to follow.
In conclusion, enforcing price transparency in healthcare is crucial for both patients and providers alike. It allows individuals to make informed decisions about their care and promotes competition among providers, leading to lower costs overall. The Ohio House’s reforms demonstrate how states can take action on this issue despite federal neglect or resistance from certain providers.
