Health Savings Account Blog

“Consumers seeking routine hospital services need to know what they’re paying so they can make educated decisions,” said Senator DeMint. “This bill provides a simple mechanism for hospitals to disclose their prices.”

Specifically, the legislation would require hospitals to regularly report to the Secretary of U.S. Department of Health and Human Services (HHS) the amount they charge for the twenty-five most commonly performed inpatient procedures, the twenty-five most common outpatient procedures, and the fifty most frequently administered medications. The Department would then post this information on the Internet for easy access.

“Americans need access to reliable information about hospital prices in order to make responsible decisions about their healthcare,” said Senator Cornyn. “This legislation aims to give Americans that information in a user friendly format. That’s an important step in the right direction towards empowering consumers to make informed healthcare decisions for their families.”

Hospital charges vary significantly based on facility and procedure. Some hospitals charge just $120 for a chest x-ray while others charge more than $1,500.

“The worst part about price discrepancies is that consumers often have no idea what the cost is from the beginning,” said Senator DeMint. “No other industry expects consumers to commit to buying before they know the true cost. This will make hospitals more accountable to patients. Patients should have access to price information before they commit to a procedure. Information is power, and this bill is an important step in empowering Americans with the tools to be smart consumers.”

On June 30, 2005, a companion bill was introduced in the U.S. House of Representatives (H.R. 3139) by U.S. Reps. Bob Inglis (R-S.C.) and Dan Lipinski (D-Ill.).

These are positive moves, which will force hospitals and other healthcare providers to finally compete in a free market.

Find more Health Savings Account inforamation at HSA for America