SerpApi.Org
(The Center Square) - A bipartisan committee of senators advanced legislation on Wednesday that would require hospitals and insurance companies to display prices for provided services.
Senators on the Health, Education, Labor and Pensions Committee, in a 21-1 vote, advanced the legislation to be considered on the Senate floor. Sen. Paul Rand, R-Ky., voted against the bill and Sen. Lisa Murkowski, R-Alaska, did not vote.
The Patients Deserve Price Tags Act, sponsored by Sens. Roger Marshall, R-Kansas, and John Hickenlooper, D-Co., is similar to President Donald Trump’s executive actions aimed at mandating price transparency in hospitals and insurance companies.
The bill would require hospitals to publicly report negotiated rates, costs and cash prices for ambulatory services, surgery centers, imaging labs and clinical labs.
Marshall estimated the passage of the bill would reduce healthcare costs for families by as much as $1,000 per month. He said the legislation would empower patients to compare prices among various hospital services.
“Once and for all, we’ll force transparency and competition into healthcare,” Marshall said. “It’s going to force healthcare providers to show you the price tag up front, not an estimate.”
Paul said he voted against the legislation because it does not address fixed prices for healthcare operations. He said individuals on Medicare and Medicaid will not have a meaningful change to their prices just because they are transparent.
“There's only a very small amount of this market that cares about this and these people don't have insurance,” Paul said. “When you mandate transparency on prices that are fixed, [it] doesn't change the situation.”
Paul urged other lawmakers to advance legislation that allows patients to have greater variability in their prices. He pointed out that nearly half the country’s population is on Medicare and they need more flexibility in the cost of services.
Functionally, the bill would require the secretary of the U.S. Department of Health and Human Services to collect a monthly report of each hospital’s standard charges. The secretary would be required to establish a format for hospitals to compile and make public standard charges.
The bill also guarantees group health plans have access to claims data and prevents third parties from restricting access to the claims data for patients.
Hickenlooper said the healthcare industry has turned into an “aggregated monopoly” because it is not required to display prices. He estimated more than 180 million Americans are affected by a lack of healthcare price transparency.
“The gaming and confusion in our healthcare system drives people crazy and we can put a stop to it,” Hickenlooper said. “The lack of transparency in our healthcare system is the proverbial elephant in the room.”
Hickenlooper pointed out that large companies providing healthcare for employees often are unaware of costs associated with their care.
“We need to ensure that Americans can seek medical care without the risk of being bankrupt,” Hickenlooper said.
The bill will move forward for full consideration on the Senate floor, where it can either be taken up or declined. The bill must be passed by the Senate, and U.S. House of Representatives by Jan. 3, 2027, to be brought into law.
