‘Health Care Transparency’ bill would require hospital data reporting, so consumers can compare costs
Idaho is one of only three states that doesn’t collect data from hospitals about costs and charges for specific procedures, according to Rep. Brandon Hixon, R-Caldwell. And 36 states have adopted transparency legislation to require hospitals to report that data; again, Idaho’s not among them. So today, Hixon introduced a Health Care Transparency bill, to require such reporting, with the data then to be posted online for consumers to access.
“This legislation is brought forth to empower the people of Idaho with data they can use to make smart, and consumer friendly choices relating to health care purchases,” said Hixon, a freshman lawmaker. The House Health & Welfare Committee agreed this morning to introduce the measure, clearing the way for a full hearing. Hixon said he’s spent months researching the issue, and believes it’s a way to help Idahoans lower their fast-growing health care costs. Click below for his op-ed piece, distributed to Idaho newspapers, on the issue.
Opinion piece by Rep. Brandon Hixon, R-Caldwell
Idahoans Need Buying Power To Leverage Against Outrageous Healthcare Costs
When I was campaigning for my very first time back in 2012, tens of thousands of people were excited about my candidacy because of my innate ability to actively listen to the people whom I represent. They understood that I am an average hard working guy, not another retired millionaire wanting to get elected to the Idaho Legislature. I also promised my people that I would strive to be a level-headed statesman that would try hard to bring outside the box solutions. As legislators, we look at a wide array of issues. I have already worked on issues such as fully funding education, 2nd Amendment protection issues, cutting taxes for small businesses, reducing regulatory fees, job growth, and much more. Of all these issues, one huge issue that stands out to me is the enormous burden of healthcare costs to Idaho’s families. The one thing that I hear time and again is that my constituents are concerned that the cost of healthcare is on the rise at record speeds. I already knew this coming in, but all the troubling personal stories really amplified my concerns and commitment for this growing problem.
What I derived from my own personal experiences over the years, and all my deep conversations with my constituents, is that these high healthcare costs are now unsustainable for the average Idaho resident. Idaho has some of the lowest wages in the nation. Couple that with extremely high healthcare costs that seem to have no ceiling, and it is the number one cause of bankruptcy in Idaho. By the way, if you are looking for the ACA (Obamacare) to reduce the price tag on healthcare, your time would be better spent wishing you would hit the jackpot tonight. The ACA (Obamacare) will not solve the root problem of high healthcare costs. In fact it opens the door for cost increases, not to mention that we are borrowing 43 cents on the dollar for all the billions of subsidy dollars that are shelled out for health insurance to those who qualify. Let me be very clear. We can’t fix the high cost of healthcare with more government subsidies.
This issue, however, is very complex and this is not my area of expertise. Having immersed myself in study of this issue over the last 6 months, I have found that there are many factors that contribute to the high cost of healthcare. However, the one that all the research and money trails keep pointing back to is right in front of our faces and is as clear as a high mountain Idaho lake. There is little to no free market interaction or transparency when it comes to healthcare in Idaho. What the average person in Idaho needs is buying power, which is a key element that has been severely lacking in healthcare.
I have seen firsthand how lopsided the relationship between buyer and seller is when it comes to healthcare in favor of the seller. It is a clear lack of knowledge that the patients have as to costs and services, plus the lack of leverage to bargain with providers. Add on top of that the sellers’ capability and motivation to place ludicrously high price tags on a wide array of items ranging from an ordinary asprin to ambulance rides. In furthering my research, I found that over 36 states across America had adopted transparency legislation in one form or another and that Idaho is not one of them. Even worse than that, 47 other states (yes I said 47) collect data from their hospitals and again Idaho is not one of them. It is this year, my freshman term, that I decided to take decisive action.
Without re-inventing the wheel, I have taken some very good existing transparency language from around the country and crafted legislation that will direct all hospitals and ambulatory surgical centers to provide discharge data and other data sets as part their Idaho licensing requirement. At the same time, Idaho will engage in a bidding process to hire a private vendor to verify and process the data. This vendor will also create a website and mobile application to disclose the average reimbursement price for the top 50 most common inpatient and outpatient services, as well as the top 25 most common inpatient and outpatient surgical procedures. Another very important feature of this bill is that it will further ensure patients rights pertaining to billing and cost disclosure, as well as fully comply with HIPPA privacy requirements that protect Idahoan’s information. I have also revised our severely outdated Idaho Medical Savings accounts statue. This is accomplished by removing the cap of $2,000 per person, and also incentivizing employers in this state to start contributing to these all important accounts.
This is a very simple formula. Transparency in pricing, plus Idaho tax free money in a savings account that anyone can accrue year over year without penalty, equals much needed buying power for Idahoans. Why is this important you ask? Because all hospitals and surgical centers in Idaho, are being gifted many millions of dollars in sales tax and property tax breaks by the same very people who are going bankrupt in trying to keep up with sky high healthcare costs. The healthcare industry is making baby steps in lowering costs, but I think these measures should have been in place many years ago, and need to quickly grow exponentially. I am fully aware that this is not an all inclusive solution to this very complicated issue, and this legislation is not intended to be a cure for this complex problem. However, it will provide some much needed buying power for all Idaho residents in the mean time.
Our hospitals and surgical centers provide a great service to their communities, but Idahoans have earned transparency, and the use of data analytics to measure their investments in our hospitals and surgery centers. Quite simply put, you cannot improve what you cannot measure. On top of that, when is the last time you remember Idahoans getting raises at the same pace as rising healthcare costs? I don’t recall either. In my mind the status quo is broken. Let’s get to work and fix it. If you have any ideas or comments I can be contacted via my website at www.hixoninthehouse.com, or on Facebook at www.facebook.com/hixoninthehouse. Thank you.
