For the first time ever, many Oklahoma hospitals are posting their prices online for every service or item they offer, creating a consumer menu.
But a closer look at these price lists shows that they are unlikely to help patients comparison-shop with ease or figure out complicated medical bills.
A check of websites for some of the largest hospital systems in the state showed the price lists are hard to find and are usually in the form of a link to a large downloadable spreadsheet file.
The itemized information in the files, listing procedures, drugs and supplies, ranges from clear-cut to nearly indecipherable, at least for ordinary patients. Moreover, many listed charges for procedures, such as an organ transplant or emergency care, don’t represent the entire potential cost to patients, because they don’t include charges from physicians who are not hospital employees.
The price lists stem from a federal regulation that went into effect on Jan. 1 requiring hospitals to post standard charges for drugs, supplies and services. However, the list, typically called a chargemaster, is rarely the amount charged to patients with private insurance or in a government insurance program like Medicare or Medicaid. Patients without insurance rarely pay the listed price either because of hospital discounts or write-offs for uncompensated care.
Some hospitals and trade associations fought the rule when it was proposed last summer, saying the price lists wouldn’t help patients find out prices for personalized care and could add confusion to the billing process. But federal regulators at the U.S. Department of Health and Human Services said it would be a good first step toward greater price transparency – a problem that health experts say restricts competition, drives up costs and subjects patients to sticker shock.
The government wants hospitals to provide the information in a computer-friendly format for further analysis; thus the downloadable data files.
“We are concerned that challenges continue to exist for patients due to insufficient price transparency,” the department said in explaining the rule. “Such challenges include patients being surprised by out-of-network bills for physicians, such as anesthesiologists and radiologists, who provide services at in-network hospitals, and patients being surprised by facility fees and physician fees for emergency department visits.”
Oklahoma Watch is a nonprofit, nonpartisan media organization that produces in-depth and investigative content on policy issues facing the state. For more Oklahoma Watch content, go to oklahomawatch.org.
