New Executive Order Could Improve Price & Quality Transparency in American Healthcare

New Executive Order Could Improve Price & Quality Transparency in American Healthcare

On June 24th, President Trump signed an executive order that urges two major changes: better transparency for hospital and health systems, and requesting guidance from the Secretary of the Treasury to expand the use of HSAs in combination with HSA-qualified health plans.

The executive order seeks to give consumers the ability to make fully informed decisions about their healthcare. By having full access to information regarding the price and quality of healthcare options, patients can choose healthcare that is best for them. The order cites the following characteristics as contributors to transparency:

  • Distinguishing between charges that providers bill and the rates negotiated between payers and providers
  • Giving patients the proper incentives to seek information about the price of healthcare services
  • Providing useful cost comparisons for services commonly offered by multiple providers through the market.

These factors empower consumers to make informed choices about their healthcare. This will also protect patients from practices such as surprise billing, which leads to a lot of financial distress among consumers with limited options.

President Trump is calling for legislation that requires hospitals to publicly post standard charge information in a consumer-friendly, simple way. He is also calling for legislation that establishes a health quality roadmap for major healthcare initiatives and increases access to healthcare data.

One of the most impactful pieces of additional legislation that President Trump is calling for is the expansion of patients’ abilities to select HDHPs that can be used alongside a HSA, along with expanded rollover of FSA funds.

What does this mean for me?

While legislation from this order is not in effect yet, you can start taking steps to prepare for changes that might come your way. Start talking about what your plans for 2020 look like, making sure that you provide plenty of information about HSAs, HDHPs, CDHPs, and FSAs.

Need assistance in getting your employees or clients prepared for this change? Contact us today and let one of our experts help you.