President signs executive order on price transparency

The White House released an executive order this week intended to introduce price transparency to medical billing. The order directs the Department of Health and Human Services and other agencies to write rules that detail what precisely must be disclosed. The American Hospital Association (AHA) responded to the announcement with a statement from Rick Pollack, AHA president and CEO, saying, “America’s hospitals and health systems strongly support equipping patients with the information they need to make informed decisions about their care and its cost.” At the same time, the statement points out, “[I]t’s important to note that hospitals already provide consumers with information on pricing, but publicly posting privately negotiated rates could, in fact, undermine the competitive forces of private market dynamics, and result in increased prices.” Some scholars agree, citing case studies where increased price transparency caused prices to rise.