Detroit News Op-ed: Price Transparency is Healthcare Reform Solution

The Detroit News ran GLPI’s op-ed explaining how price transparency is the solution to America’s healthcare cost crisis. Read the full op-ed here and an excerpt below.

Price transparency is necessary for Trump's health subsidy plan

President Trump has flipped the script on health insurance subsidies. He recently proposed redirecting taxpayers' Affordable Care Act payments to patients themselves so they can purchase their own care and coverage.

"Pay the people, not the insurance companies," he wrote. "Call it Trumpcare."

The dispute over expiring ACA subsidies was the source of the 43-day federal government shutdown that ended last week. Senate Republicans have promised a floor vote on the future of these enhanced payments in December.

Trump's plan is a better alternative. Giving this money directly to consumers empowers them to choose higher-value treatments and insurance. It forces providers and insurers to vie for patients' business by lowering prices and improving quality rather than enriching themselves with captive revenues.

The plan makes healthcare subsidies similar to existing federal aid for food and housing, where benefits go directly to those in need, keeping costs relatively affordable. 

However, the ultimate success of Trump's plan depends on the inclusion of one fundamental policy: price transparency. Patients need upfront prices to avoid widespread price gouging and choose affordable care and coverage.

Price transparency can also reduce costs far beyond the less than 10% of Americans covered by ACA exchange plans -- namely, the 165 million people who receive employer-sponsored coverage.

…

Read the full op-ed in the Detroit News.