Employers strongly support transparency to improve the U.S. health care system
Washington, DC – The ERISA Industry Committee (ERIC) applauds the Trump Administration for releasing the “Transparency in Coverage” final rule, which will require insurance companies and employers to ensure health care prices are available to consumers. The rule will help lower health care costs and ensure that patients receive the best care at fair prices, without any surprises, by requiring health plans and employers to post online out-of-pocket costs and negotiated rates – both of which are necessary for consumers to shop for health care services.
“The regulation comes not a minute too soon, as millions of Americans are struggling to pay inflated health care costs. Price transparency will empower patients to make more informed decisions while also driving competition among health care providers, reducing health care costs, and improving the quality of care,” said James Gelfand, Senior Vice President of Health Policy.
ERIC has fully supported the Administration’s efforts to increase the transparency of medical prices. Rising health care costs jeopardize the viability of the employer-sponsored health insurance system. In order to maintain a private, market-driven health care system, value-based care strategies must be incorporated into our health care infrastructure – and medical price transparency is key to all value-based care strategies.
In comments submitted to the Administration at the beginning of the year, ERIC fully supported the disclosure of:
- A patient’s cost-sharing liability for a particular medical item or service
- The negotiated in-network rates for medical items and services covered under the health plan
- The “historical” payments made by the health plan to out-of-network providers
ERIC appreciates that the Administration incorporated some of our feedback on the proposed regulation, including:
- Implementing, in a cost-effective way, an online cost-sharing tool that equips patients with the most accurate, customized cost-sharing information
- Delaying the effective date of the regulations and implementing a gradual transition to allow for plan sponsors to address any technical difficulties they may experience during the transition
“Pricing transparency is a step in the right direction to improve our health care system. Now Congress should act to codify the rules, so patients and plan sponsors can have certainty for the future,” said Gelfand.