Medicare Releases Hospital Prices For Outpatient Procedures
| By Daniel Chang, The Miami Herald |
Th average charge for a Level 2 excision and biopsy at
The lowest price in
The national average cost for the procedure:
By making public the costs of medical procedures, the Obama administration said it hoped to increase transparency from healthcare providers and empower consumers to be smarter shoppers for medical care.
Speaking at a healthcare data conference in
"A more data driven and transparent healthcare marketplace can help consumers and their families make important decisions about their care," Sebelius said in a written statement. "The administration is committed to making the health system more transparent and harnessing data to empower consumers."
But the data dump elicited a slightly different response from national hospital associations that represent the interests of healthcare providers.
"
"Consumers need the information on pricing that enables them to make these choices, which in most cases will be what it costs them out of pocket for their care," Kahn said in the statement. "That is why we believe that insurers should be required to provide to their members meaningful cost-sharing information enabling them to make good healthcare choices."
The value of revealing hospital prices has been debated because few people actually pay the prices charged, especially privately-insured consumers, whose insurers pay pre-negotiated rates for services and whose choice of provider is often pre-determined.
Still, insurance companies set their reimbursement rates based on hospital prices and the
Prices also may become a bigger factor in consumer decisions as healthcare reform changes the way consumers pay for insurance coverage. Many insurance plans are moving from co-pays to co-insurance, which means that instead of a fixed co-payment consumers will assume a percentage of the cost of a medical procedure.
That could add up when prices are so varied. For example, an MRI at the
In Broward, the average charge submitted to
The national average for an MRI, according to the data:
Despite the price variances, though,
Another reason prices will become more important for privately-insured consumers is a shift toward high deductible plans, or "consumer driven healthcare," in which patients are responsible for paying a pre-agreed amount of their total medical costs before the insurance kicks in. That's also likely to push consumers to shop around more since the first chunk comes out of their pockets.
For years, though, hospitals have been reluctant to publish prices for fear of relinquishing a competitive advantage.
But the Obama administration's release of hospital charges and
Like officials in the Obama administration, Sonenreich argues that price transparency among hospitals of similar quality will lead to lower healthcare costs. But he also accused some
But by charging higher rates, Sonenreich said, these hospitals force private insurers to negotiate lower rates of payment with other hospitals for the same procedure.
That leads to higher costs for employers and higher premiums for employees, he said.
Among the data released Monday were
In
___
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| Source: | McClatchy-Tribune Information Services |
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