President Trump has just signed an executive order requiring the cost of health care procedures to be available to patients before they receive services, denoting a sweeping change to thee way the health care industry currently operates.
In a news conference to announce the initiative, Trump stated:
This is a big action….people have no idea how big it is….This is bigger than anything we’ve done in this particular realm.
The initiative is designed to create transparency in healthcare, Health and Human Services Secretary Alex Azar told reporters earlier Monday.
Hidden prices studied in health care markets and consumers analysis suggests that when cash prices are transparent upfront, they are 39% for consumers. Over 300 price variations were often found for the same procedure across different healthcare markets. The new plan will affect lower prices through competition, greater access, and greater value.
The order aims to make sure patients can access important information prior to a healthcare visit, including the cost of a procedure, the insurance-company’s negotiated price, and what their out of pocket expenses will be.
As it currently stands, most patients learn their actual costs weeks after a procedure, when they receive their “surprise” bill.
“No American should be blindsided by large medical bills, ” said the President.
It’s also about helping Americans find excellent care. Currently patients do not have tools needed to adequately decide on the doctors who would deliver the best health outcomes at an affordable cost.President Donald Trump
The program looks to expand associate health plans, short term arrangements, stop surprise medical bills, and expand tax free health savings accounts.