Unexpected Medical Bills Hurt Families
When it comes to affording unnecessary or unexpected medical bills, American families are reaching a breaking point. A group of 32 economists, academics and business leaders recently wrote a letter to Congress saying that legislation to increase hospital price transparency would save up to $1 trillion in wasteful medical spending each year. They implored lawmakers to back the Health Care Price Transparency Act 2.0. They believe this measure will benefit middle-class families “whose paychecks are being devoured by runaway healthcare costs.”
Currently, federal rules require hospitals to post the cash prices and rates negotiated with health insurers. They have to include estimates for at least 300 services as well, so consumers can compare prices. Unfortunately, there are too many loopholes in the existing federal rule. This has lead to only 15 hospitals getting fined for failing to post prices. There is also a lack of enforcement of this rule. We need to hold hospitals accountable when they fail to share the information mandated by law.
A Lack of Price Transparency Causes Massive Issues
At a time when an MRI can cost $300 or $3,000, depending on what hospital (or even what department within the same hospital) patients receive it from, the need for reform cannot be overstated. Patients enter the waiting room expecting one price. Imagine the shock when they find the cost is vastly different on the final bill in the mail.
This legislation would give employers and consumers price-comparison tools to shop for better health care prices. This needs to be available in advance of their appointments, as providers rely on it being too late once people are thinking about the cost. Requiring health care providers to post computer files of all actual prices – not estimates – would avoid the surprise costs in unexpected medical bills.
Unsurprisingly, many hospitals do not support the bill. However, employer groups say prices are more important than estimates and are in favor of the bill. They believe that transparency is critical for both employers and workers. In order to make good financial decisions, consumers need information about where to find a good price.
How Solidarity Approaches this Issue
Solidarity HealthShare has long recognized the importance of transparent healthcare pricing. In fact, affordability and transparency are essential to our ministry’s framework for comprehensive medical care. By negotiating bills on behalf of our Members, helping guide Members to providers with fair prices, and pushing back on balance bills, we ensure that our Members have all the information they need to make wise decisions about their healthcare.
Even our model for the sharing of medical expenses between Members is open and transparent. Members make a monthly contribution to a secure online account where they can view the dollar amount they have contributed, review the cost of their own bills and see exactly with whom they have generously gifted medical funds. Members are even able to choose whether to display their names in the portal or to remain anonymous.
Each of these protocols ensure that Solidarity Members have full visibility into the money they contribute. To learn how you can join the Solidarity community, click the banner below. Or you can give us a call today at (737) SHARING.
