Thanks for posting the Arthur Laffer article on price transparency. The article probed into a very important area.
I would note, however, that the three largest instances of cost savings had nothing to do with individual patient-consumers. I have followed the Montana employer plans and the Rosen plans in detail, and their savings came from employers asserting themselves. Individual patient choices were not involved.
Also, the table of price variations in Los Angeles was not too helpful. One hospital may have a $6,000 rack rate but offer a 60% discount to large insurers. Another hospital may have a $5,000 rack rate but offer a 50% discount. Ultimately the price is about the same.
I believe the $10K SALT deduction limit is scheduled to expire at the end of 2025 anyway, and I don’t see much prospect for renewal in a divided Congress. We’ll be lucky if we have a House speaker by then.
A study was done in 2014 covering a large group of Calpers patients and price transparency.
One batch of patients was given price transparency tools, and another batch was not.
The results after two years was that spending on lab tests and office visits went down slightly for the group that had disclosed prices. Overall spending did not go down very much however.
This is completely consistent with my own lived experience. For serious and expensive care, I am going to go to a doctor that I trust.
In theory a pregnant couple could shop around for the best hospital prices. Do they really do so?
I like the idea of price transparency, but Dr. Laffer makes claims for it that I do not think are justified.
Thanks for posting the Arthur Laffer article on price transparency. The article probed into a very important area.
I would note, however, that the three largest instances of cost savings had nothing to do with individual patient-consumers. I have followed the Montana employer plans and the Rosen plans in detail, and their savings came from employers asserting themselves. Individual patient choices were not involved.
Also, the table of price variations in Los Angeles was not too helpful. One hospital may have a $6,000 rack rate but offer a 60% discount to large insurers. Another hospital may have a $5,000 rack rate but offer a 50% discount. Ultimately the price is about the same.
I believe the $10K SALT deduction limit is scheduled to expire at the end of 2025 anyway, and I don’t see much prospect for renewal in a divided Congress. We’ll be lucky if we have a House speaker by then.
A study was done in 2014 covering a large group of Calpers patients and price transparency.
One batch of patients was given price transparency tools, and another batch was not.
The results after two years was that spending on lab tests and office visits went down slightly for the group that had disclosed prices. Overall spending did not go down very much however.
This is completely consistent with my own lived experience. For serious and expensive care, I am going to go to a doctor that I trust.
In theory a pregnant couple could shop around for the best hospital prices. Do they really do so?
I like the idea of price transparency, but Dr. Laffer makes claims for it that I do not think are justified.
”Dr. Laffer makes claims for it that I do not think are justified”
Please elaborate. Why not? 😎