Health care price transparency could save Americans $1T annually
Fox News senior correspondent Alicia Acuna reports on a new survey which shows doctors' appointments in metropolitan areas are hard to come by.
EXCLUSIVE: Requiring price transparency from hospitals and insurance companies could drastically slash national health care costs and extend the average American life expectancy, according to a new report published by advocacy group Patient Rights Advocate (PRA).
System-wide health care price transparency could reduce federal spending by more than $1 trillion annually, while simultaneously improving health outcomes and lifting the average life expectancy in the U.S., according to the report, which was co-authored by PRA founder and Chair Cynthia Fisher and Art Laffer, a former economic adviser to former President Reagan.
The idea is that by making prices public, hospitals will face pressure to be more competitive on price, quality, outcomes and access. When patients have the ability to see the actual prices for treatments, they can identify major cost differences for the same care and choose more affordable care at market rates. That in turn will force hospitals to lower prices in order to become more competitive.
HEALTH INVESTING EXPERTS DISSECT WHY HEALTH STOCKS ARE DOWN
A nurse talks to an elderly patient in a hospital. (iStock / iStock)
«When prices are known, consumers choose affordable care at best-market rates and benefit from competition,» the report said. «Consumers will avoid price-gouging providers and insurance companies, applying pressure to lower prices.»
Prices charged for health care vary dramatically depending on several factors, including whether a patient is in or out of the patient's insurance network and what price the hospital negotiated with the insurance
Read more on foxbusiness.com
