U.S. President Donald Trump plans to issue an executive order on Monday asking health insurers and doctors to disclose new details about healthcare costs, in an attempt to improve price transparency, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
The order will direct federal agencies to initiate regulations and guidance that could require insurers, doctors, hospitals and others in the industry to provide information about the negotiated cost of care, according to the report.
Insurers could be compelled to disclose prices under the Health Insurance Portability and Accountability Act and Employee Retirement Income Security Act, the report said, but added that it was unclear how aggressive the order will be because of pushback from the industry and some White House advisers.
There’s also this article from May on Marketwatch.
I don’t exactly know how any of this will effect healthcare pricing and profitability. I don’t see how greater patient knowledge in regards to pricing will necessarily lead to a hit in profits. Unless the profitability of American healthcare is premised on patients having no idea how much shit will cost before they get said healthcare. Maybe it is. I’m not a healthcare professional.
It’d make sense that patients knowing pricing will make them more discerning shoppers (this health insurance gets lower prices on X procedure, so I’m going to them), and the rumored steps Trump wants to take on busting up the regional monopolies could definitely harm profits.
I dunno, without more actual DD, it’s a crapshoot. Shareholders being pissy about new regulation isn’t exactly new, and shouldn’t be seen as an immediate sign that profits will tumble. But then again, they may be right, and this might suck.