NY Governor Unveils Plans for Hospital Price Transparency Website
Governor Cuomo is proposing a hospital price transparency website that would allow consumers to compare the cost and quality of procedures at hospitals across the state.
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By - Hospital price transparency is coming to New York, according to an announcement from the state’s governor.
Governor Andrew M. Cuomo unveiled on Dec. 27 his plans to create a consumer-friendly website called NYHealthcareCompare where New Yorkers can compare the cost and quality of procedures performed by hospitals across the state. Specifically, New Yorkers would be able to see cost, quality, and volume data by specific hospital, as well as search by medical procedure costs and affordability questions.
The website would also provide consumers with educational resources to help them understand their rights, including financial assistance options and what to do about a surprise medical bill, Governor Cuomo added.
“This new website will give New Yorkers the facts they need to make informed decisions about the cost and quality of healthcare procedures - helping increase competition in the marketplace and driving down prices,” he said in the announcement.
Hospital prices are on the rise. A recent analysis performed by UnitedHealth Group found that hospital prices for inpatient services increased by 19 percent from 2013 to 2018, while physician prices for the same category of services rose by just 10 percent during the same period.
New Yorkers have fared relatively better than their peers in other states when it comes to rising hospital prices. A 2019 RAND Corporation study found that New York had relative prices in the 150 to 200 percent range of Medicare rates, while the average range was 241 percent and other states had relative prices in the 250- to 300-plus percent range of Medicare rates.
But this increase is still too much for many New Yorkers, according to Governor Cuomo who explained that his office plans to create the hospital price transparency website to help empower consumers facing higher patient financial responsibility.
“New York has made tremendous progress protecting consumers from unreasonably expensive medical care,” he said in the announcement. “But the cost of many healthcare procedures has risen in recent years in part because consumers don't have an easy way to compare prices at different hospitals in their area.”
Price transparency is notably lacking in healthcare, according to many industry leaders. Chief among them is President Trump.
The Trump administration has made healthcare price transparency a top priority, especially for hospitals. In 2018, the administration finalized a hospital price transparency policy that required hospitals to publish their chargemasters online. By 2021, the administration plans to expand price transparency to payer-specific negotiated rates and other pricing information, such as discounted cash prices and gross charges.
“President Trump has promised American patients ‘A+’ healthcare transparency, but right now our system probably deserves an F on transparency. President Trump is going to change that, with what will be revolutionary changes for our healthcare system,” HHS Secretary Alex Azar said earlier this year.
But efforts by the federal government to increase hospital price transparency are facing staunch industry pushback and several hospitals have sued the administration in order to stop the implementation of the policies. Specifically, hospital leaders fear that publishing their chargemasters and negotiated rates will harm competition by enabling payers to negotiate unfair rates. They also argue that the requirements will confuse consumers whose insurance pays the published rates.
Despite industry criticism, federal and state policymakers are moving ahead with hospital price transparency initiatives. In New York, increased demand for reliable pricing information is motivating hospital price transparency efforts, Governor Cuomo explained.
“The cost of planned services can vary widely within a region,” he explained in the announcement. “For consumers to be empowered to shop for healthcare services, consumers first need to be aware that there is a trusted source of information that is presented in a user-friendly and accessible way. Existing information is scattered across websites. Consumers cannot easily find what they are looking for, leading them to give up on finding the information they need.”
Governor Cuomo anticipates launching the website in 2020.
