A group of 32 economists, academics and business leaders penned a letter to U.S. Senators this week saying that price transparency in health care markets could save $1 Trillion “by empowering consumers, increasing competition, and eliminating waste and inflationary middle players.”
Signatories include Rice University economist Dr. Vivian Ho and Brown University economist Dr. Christopher Whaley, both members of the Texas Employers for Affordable Health Care advisory board.The letter also explains how accessible, actionable, fully-transparent pricing data can empower employers can reduce waste while increasing both savings and access to quality care.
“Employers and unions, which provide health coverage for more than 160 million Americans, can cross-reference their health plan claims data and posted prices to avoid and rectify overbilling and design affordable health plans,” the letter says. “They can steer workers to the highest quality care at the lowest possible price and share the savings with them in the form of lower premiums and higher wages.”
Texas lawmakers have taken crucial first steps towards restoring price transparency and competition to health care markets in recent years, and have an opportunity to build on this foundation during the legislative session scheduled to convene in January.
“Fully funding the Texas All-Payer Claims Database and promoting honesty in billing by requiring facilities to use National Provider Identifier numbers to identify the location where care is actually provided are two ways that Texas state lawmakers can have a real impact on the price of health care,” says Texas Employers for Affordable Health Care Executive Director Chris Skisak. “As these economists indicate in this letter, the State leaders have several policy options that could have a meaningful impact, not only on the price of health care, but the Texas economy more broadly.”