Why Hospital Price Transparency?
Would you buy a car without knowing the price? How about furniture or appliances? Most couldn’t imagine doing that, yet thousands of Wisconsinites have experienced purchasing something without knowing the cost – healthcare.
In 2022, a Rand Corporation study reported that Wisconsin had the 5th highest hospital prices in the country. Surveys shows that nearly three out of every four Wisconsinites think health care costs are just too high. Nationally, health care costs consume nearly 20% of U.S. GDP. We need a shakeup.
The first step is to replace uncertainty with clarity. 80% of healthcare services are shoppable, and this bill would require all hospitals to publish the standard charge for at least 300 of these common services on their website in plain language and free-of-charge – no jargon and no log-in needed.
Transparency wouldn’t just bring peace of mind – it can lower costs too. Research has shown that in states with easily accessible pricing information, costs go down for both consumers and insurance companies. Not only is this good news for patients, but it’s encouraging for small businesses too, as one of their greatest costs is insurance for their employees. Transparency is a win-win!
A recent Marist poll revealed that over 90% of Americans believe in hospital price transparency. In 2019, the Trump Administration implemented federal price transparency rules. These went into effect in 2021 after surviving legal challenges. Recently, the Trump administration doubled down. But even after these steps have been taken at the federal level, state-level reform is still necessary.
The bill will help improve compliance by offering effective enforcement mechanisms and ensuring that the state work with hospitals to ensure truly transparent pricing.
It's time for Wisconsin to take the lead, and this bill helps it do just that. This proposal can empower patients, foster fair competition, strengthen market efficiency, and restore trust in our healthcare system. If enacted, it won’t just save money—it could save lives by ensuring that cost is no longer a barrier to seeking care.
