The high cost of health care has a major small business organization in Michigan calling for posted prices for medical services and procedures by hospitals across the state. In fact, they're backing a bill in the Michigan Senate that would make posted prices by hospital organizations a state law requirement.
The National Federation of Independent Business (NFIB), today urged the Senate Health Policy Committee to support legislation that would require hospitals to post prices for medical services and procedures.
Senate Bill 147 sponsored by Senator Joe Hune, would require a hospital that used a charge description master (CDM), sometimes known as a “chargemaster”, to make it available on the hospital's website or at the hospital location, as applicable.
Charlie Owens is the State Director in Michigan for the NFIB. He says, “With the high cost of health care and the requirements that everyone have coverage under the Affordable Care Act, it is time for hospitals to be more accountable and transparent for the prices they charge for procedures and services.” He goes on to say, “It is doubtful that a private enterprise engaged in commerce with an economic footprint similar to that of our hospitals would escape scrutiny by regulators and policy makers if they engaged in similar pricing practices.”
Owens says that, although most hospitals in Michigan keep a uniform schedule of charges as their gross billed charge for a given service or item, they are reluctant to make that information available to the public. In addition, he contends that medical facilities around the state are billing patients for charges that bear little to no relation to the actual cost of the health service provided but are instead based on what kind of coverage is possessed by the patients.
Owens says, “The trend of small business owner responses over time when they are asked questions relating to whether or not hospitals should be required to post their prices for procedures and services bears witness to our concerns.” He adds, “As the cost of healthcare has escalated the call for more transparency in pricing by the small business community has also risen.”
Owens told the Committee that it was ironic that private medical facilities are more likely to embrace transparency in pricing than many taxpayer funded “nonprofit” hospitals.
He says, “It is time for hospitals to be more accountable and transparent for the prices they charge for procedures and services.” He suggests, “Hospitals should be required to make public their charge schedules and end the confusion and ambiguity of medical services to their patients."
NFIB is the nation’s leading small business association, with offices in Washington, D.C. and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business.
