Aug 16, 2022 2 min read

A group of Democratic Pennsylvania lawmakers announced a bill recently that would require price transparency from health care providers.

It’s a good idea. But the existence of a new state bill only illustrates the failure of an existing federal law that already requires price transparency.

State Sen. Katie Muth and Reps. Dan Williams, Christina Sappey and Danielle Friel Otten, all of whom represent parts of Chester County, plan to introduce mandatory price transparency as part of a broader bill that would require the state Department of Health to approve hospital sales. It is in response to the closure of two hospitals in that region following their sales.

The price transparency piece should not be necessary. The U.S. Department of Health and Human Services implemented the congressionally mandated hospital price transparency rule in 2021, but most hospitals have ignored it.

A study this year by Patient Rights Advocacy.org found that nationwide, only 14% of hospitals and health care systems have complied with the rule.

The rule is based on the notion that price competition for health care services would reduce their costs, just as price competition does so in the general economy. It requires all health care providers to post prices for common services, thus enabling consumers to compare costs.

Even with 100% compliance, the rule would be only a partial solution because it deals only with certain planned procedures. People who need emergency care can’t shop for it. So the issue is just another example of why universal care is necessary.

Meanwhile, the federal government at least should enforce the rule. It should fine providers that do not post prices. And when providers fail to do so, the government should mandate that they may charge only the published Medicare rate.