The price of medical care is one of the country’s biggest kept secrets. But that could change quickly in Colorado.
Two and a half years after the federal government ordered hospitals to post prices in an easy-to-read format, states are doing what federal regulators have failed to do and enforce policies.
A new bipartisan law allows the Colorado Attorney General to pursue hospitals that don’t comply. Failure to post prices is a deceptive trade practice and is subject to a fine of $20,000 per violation.
Cynthia Fisher, founder of Patient Rights Advocate.org, said the law is the toughest in the country and will serve as a national model.
Health care, she said, is the only place where people buy goods and services and later find out how much they cost.
“As long as hospitals and insurance companies can hide prices, you can charge as much as you want,” she says.
Currently, an MRI costs $300 to $3,000 and a C-section $6,000 to $60,000, she says.
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“We know that even within the same hospital, drug prices can vary by a factor of 10,” she says.
In 2021, Fisher was part of the group that persuaded the Trump administration to enact a federal rule requiring all hospitals to post the rates and plans of all surgeries by all payers in an easy-to-read format. was.
Two and a half years later, only 25% of hospitals nationwide and 18% in Colorado are compliant, she said. Despite their defiance, federal regulators have fined only four hospitals, she said.
Colorado is also now intervening.
Gov. Jared Polis signed into law a law directing the Office of Health Policy and Finance to track compliance and refer violators to the Attorney General.
“People have the right to know exactly how much things cost and to actually shop in advance, rather than receiving mysterious bills in the mail after the fact,” Polis said.
Kim Bimestefer, executive director of health policy and finance, said the new law will create competition in the health care sector and save Colorados money.
“Everything hospitals charge is ultimately paid by consumers, families, employers, municipalities and taxpayers. So this is a game changer,” she says.
Fisher said Colorado will soon become the first place in the country where people can go online and buy medical supplies like anything else.
“This means that for the first time, we can put you in the driver’s seat and really know the price and reduce your healthcare costs,” Fisher said.
She said tech companies are ready to aggregate data and create Expedia-like websites about healthcare as soon as it’s posted. There, for example, if you search for knee surgery in Denver on Friday, you’ll get a list of options.
