Lawmakers Pass Bipartisan Bill to Lower Healthcare Costs, Increase Transparency

A bipartisan bill aimed at lowering healthcare costs and increasing transparency has been passed by the House of Representatives. The Lower Costs, More Transparency Act (H.R. 5378) now heads to the Senate.

Key Provisions of the Bill:

• Requires hospitals and insurance companies to be more transparent about their costs. This includes providing patients with estimates of their out-of-pocket costs for procedures before they are performed.
• Reduces Medicare payments to hospitals for some services that are also provided in outpatient facilities and doctor’s offices. This provision is intended to save money and create a more level playing field for different types of healthcare providers.
• Requires more transparency in pricing from pharmacy benefit managers. This provision is intended to help patients understand the true cost of prescription drugs.

The bill has been praised by consumer advocates and some lawmakers who say it will help patients save money on healthcare.

“This bill is a major milestone on the road to price transparency in health care,” said Patricia Kelmar, PIRG’s senior director of health care campaigns. “It helps consumers that have faced higher costs in the wake of the increasing consolidation of the healthcare industry.”

Hospitals have opposed the bill, arguing that it will reduce their Medicare funding and hurt their ability to provide care.

“We have been very clear regarding the harm that would be done to our nation’s hospitals if so-called site-neutral cuts to Medicare were adopted,” said Rick Pollack, president and CEO of the American Hospital Association. “We have strongly urged that those cuts be eliminated from this legislation.”

The bill's future in the Senate is uncertain. Some senators have expressed support for the bill, while others have raised concerns about the cuts to Medicare funding.