Brown Scholar Advocates for Price Transparency in Health Care Reform
TL/DR –
The United States spends more on healthcare than any other country, but this is mostly due to high costs and inconsistent pricing rather than increased investment in patient care, according to Brown University public health researcher Christopher Whaley. His research suggests that high hospital costs are due to provider consolidation, rather than variations in care quality, and that these rising costs strain government finances and reduce worker wages, particularly for middle- and lower-income Americans. While not a complete solution, Whaley argues that price transparency is crucial for improving the efficiency and regulatory oversight of healthcare markets and allowing provision of healthcare benefits at fair prices.
US Health Care Costs Skyrocketing Due to High and Variable Prices
WASHINGTON, D.C. — In the United States, health care expenditure is higher than anywhere else in the world. But it’s not due to increased patient care investment, rather high and fluctuating prices. This continues to push the cost of health care upward.
Brown University public health researcher Christopher Whaley emphasized this when testifying before Congress on July 11. He presented research highlighting the escalating costs of health care and the importance of price transparency for rectifying the situation.
“Price transparency isn’t a panacea for the health care system. It’s a crucial component for enhancing efficiency and regulating the health care market in the United States,” stated Whaley, an associate professor of health care policy.
In a U.S. Senate Special Committee on Aging hearing titled “Health Care Transparency: Lowering Costs and Empowering Patients,” Whaley elucidated his perspective. Being affiliated with the Center for Advancing Health Policy through Research, Whaley’s examination of health care price transparency and the evolution of U.S. health care markets is invaluable.
Increased Spending Does Not Equate to Superior Care
Whaley stressed that high spending doesn’t necessarily equate to superior patient care. Research shows that hospital costs are influenced by provider consolidation, rather than quality of care differences.
Escalating health care costs strain government finances and decrease worker wages, especially for middle- and lower-income Americans. The variability and opacity of hospital prices contributes to consolidation, deteriorating access to care, quality of care, and patient satisfaction.
According to Whaley, price transparency is key for employers and insurance purchasers to offer health insurance benefits at fair prices.
Price Transparency: A Catalyst for Innovation and Policy Change
“Price transparency should act as a catalyst for benefit design innovation and guide policies reducing expenditure and enhancing quality,” Whaley said.
He recognized that efforts have been made to boost price transparency, citing examples of its innovative use to decrease patient costs, save public funds and insurance payers money, and redirect savings to employees. However, he noted these endeavors are currently incomplete.
Whaley stressed that lawmakers should build on these initial efforts and proposed enhancements to pricing data management and accessibility through federal requirements and proposed bipartisan legislation.
“Federal policies promoting transparency are imperative first steps, and I believe building on these will improve the U.S. health care system and reduce spending, particularly for aging Americans.”
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