Health policy expert on price transparency: 'I don't think this is going to work'

Michael Cannon from the CATO institute says price transparency may actually result in an increase in prices for some people.

The Randy Tobler Show
December 20, 2019 - 7:30 am
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(KFTK) – Michael F. Cannon is the Cato Institute's director of health policy studies.  He joined Randy to discuss the new Executive Order regarding price transparency.

Cannon says on one hand, "if you're going to take Caesar's coin, then we want you to follow certain rules. If you don't want to reveal the contractual relationships you have with various insurance companies, then you don't have to participate in Medicare and Medicaid."

"On the one hand I don't find it that offensive because I think the government should be able to put conditions on government spending. On the other hand, I don't think this is gonna work!" says Cannon. 

Cannon says healthcare providers keep their actual costs close to the vest, "even if you could get them to give you the actual prices that they charge, that's not going to change consumer behavior.   When a consumer has just a $1000 deductibble or a $100 co-pay, they're not going to care what the actual price is, they're only going to care how much they are paying. So they're not going to change their behavior." 

Read about the Executive Order HERE

 

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