Imagine you are planning to build a home. Your first task would be to locate a small group of good builders and then interview them. You would not necessarily go with the cheapest builder, because the cheapest builder might cut corners in order to come in close to the estimated price. Most likely you choose a builder that does good quality work, is transparent with their charges and openly shares what will happen with any needed changes. Once complete, the cost of building your house should not be a total surprise. Why don’t we have that same agreement with healthcare? Well, we actually do. Let’s talk about it.

In 2019, according to a Centers for Medicare & Medicaid Services fact sheet, there was an important and sweeping set of requirements created to make a long list of hospital charges transparent for the consumer. This new rule required that hospitals give updated information on charges through easy to access and understand public sites. This means if a price changes, it needs to change immediately on the site so that any consumer looking for treatment can compare up-to-date prices from different hospitals to choose the best option for them. The hospitals were also required to give information as to which treatments a consumer can barter for a lower price. That in and of itself is empowerment.

The order written in 2019 was slow to be adopted because of litigation, which was later upheld in courts. However, as of February, a new executive order has been signed to enforce the 2019 order with a May 2025 deadline of compliance. You can find the new 2025 executive order here to read the full extent of this transparency. This topic is to support the open, honest discussion of prices, not to state any political affiliation.

Not every price can be stated and not every stay or visit to the hospital can be predicted. Emergency services are not covered because by their nature they are unexpected. Any changes, problems or alterations to a procedure with associated costs, cannot be legitimately planned either because the doctor may not know what they’re going to encounter until they begin a surgery or procedure. It should be noted that the executive order did not require all hospital charges be publicized. In fact, they only cover around 300-500 different services.

So why is transparency good? Shining a light on the costs associated with hospital care allows a patient to make the decisions that best fit their needs. Transparency and knowing where a patient can barter prices, forces a company to remain truthful and empowers the consumer.

So what do you think?

In an upcoming article, I will be describing indepth about the healthcare act for transparency, and the impact on your life. A link to the article will be available on this blog post and in the portfolio page.

Blessings,

Sarah DED