{"id":1263,"date":"2026-08-01T05:07:11","date_gmt":"2026-08-01T05:07:11","guid":{"rendered":"https:\/\/nationallogisticspost.com\/?p=1263"},"modified":"2026-08-01T05:07:11","modified_gmt":"2026-08-01T05:07:11","slug":"why-healthcare-price-transparency-will-fail","status":"publish","type":"post","link":"https:\/\/nationallogisticspost.com\/?p=1263","title":{"rendered":"Why Healthcare Price Transparency Will Fail"},"content":{"rendered":"
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A<\/span>s Democrats and Republicans fight over details of\u00a0new rules for medical price transparency, the welfare of patients is lost in the fog of partisan war. If you look critically at how healthcare dollars currently flow, it is clear that price transparency won\u2019t work. Moreover, all such rules can be made\u00a0unnecessary<\/em>.<\/p>\n

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Both \u00a0and\u00a0 bills preserve and build on current legislation. They both strengthen enforcement controls, increase penalties, and require providers to fill out new forms with terabytes of mostly useless data. The House bill adds ambulatory surgical centers and pharmacy prices. The Senate proposal adds clinical diagnostic labs and imaging centers and requires extensive, detailed itemized bills provided to patients. The differences are small and minor.<\/p>\n

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By restoring spending control with the necessary funds to the public, all price transparency and BURRDEN become unnecessary.<\/p>\n<\/blockquote>\n<\/div>\n

The ostensible reason for promulgating price transparency rules is to reduce the prices for medical services that have consistently outpaced the rate on inflation over recent decades. The word most commonly seen attached to healthcare in news articles, on radio, and TV is \u201cunaffordable.\u201d<\/p>\n

There are five reasons\u00a0why price transparency cannot achieve its stated goal of reducing healthcare prices. 1) Price (charge) is not the same as payment. 2) Financial\u00a0 \u2014 third party payment structure; 3) Unrecognized but very real cost of BURRDEN: bureaucracy, unnecessary rules and regulations, directives, enforcement, noncompliance; 4) Encourages, even facilitates, fraud; and 5)\u00a0Perverse incentives, such as rewarding insurance with profits for denying payment for patient care.<\/p>\n

In the typical, everyday free market, price is what the consumer pays. In healthcare, price has no consistent relationship with payment. Payment amount varies with each contract and this year\u2019s federal Allowable Reimbursement Schedule. Furthermore, a third-party, not the consumer (patient), decides what will be paid, which is proprietary information, confidential, and typically a small fraction of the published charge.<\/p>\n

Financial disconnection is the crucial difference between a free market and the third-party-dominated, centrally controlled market that is U.S. healthcare. In a free market, the consumer decides how much he wants to pay, chooses the provider, and pays with his own dollars. In that market, because the consumer pays from personal funds, there is a powerful incentive to spend less, to save money. When a third party pays, the consumer incentive is missing. Thus, making prices transparent to consumers won\u2019t change spending behavior.<\/p>\n

Every time Congress passes healthcare legislation, the cost of BURRDEN goes up but is not accounted. Last year, the U.S. expended $5 trillion on healthcare \u2014 half (!) was spent on . Those were healthcare dollars that produced no patient care. As new rules and regulations are passed, even more money will be diverted from care to fund bureaucracy.<\/p>\n

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Since disconnection \u2014 of buyer (patient) from seller (provider ) \u2014 is the reason healthcare is failing and why price transparency won\u2019t work, reconnection<\/em>\u00a0will permanently fix both problems.<\/p>\n

Reconnecting the buyer with the seller means the buyer, not a third-party, pays the seller. The patient \u201cowns\u201d his or her healthcare dollars and is free to choose whom to pay, how much, and what he or she will get, the same way a consumer buys all other services and goods.<\/p>\n

Half of the country \u2014 families of 84 million workers \u2014 are covered by so-called \u201cemployer-supported\u201d\u00a0health insurance. An average of\u00a0$36,993 were wages last year that each employee earned but did not receive \u2014 it was sent to an insurance company. If, instead, that money were paid to the worker and placed in a new , there would be a free market for health care of more than $2 trillion. Similar \u201cgive the money to the people\u201d (President Trump, November 2025)\u00a0plans\u00a0are possible for Medicare and Medicaid populations.<\/p>\n

With consumers in control of healthcare spending, sellers must advertise their prices if they want to have customers. Advertised prices must be what the customer pays and what the seller receives, just like in every free market and unlike the current third-party payment system.<\/p>\n

By restoring spending control with the necessary funds to the public, all price transparency and BURRDEN become unnecessary. Prices would very likely plummet due to free market forces. Care would become affordable. Hundreds of billions of taxpayer dollars will no longer be wasted and cannot be fraudulently taken.<\/p>\n

READ MORE from Deane Waldman:<\/strong><\/p>\n

The Wrong People Hold Health Care Purse Strings<\/strong><\/p>\n

Why Your Phone Got Cheaper \u2014 and Your Health Insurance Didn\u2019t<\/strong><\/p>\n

Empower Patients, Reclaim Healthcare<\/strong><\/p>\n

Deane Waldman, M.D., MBA, is Professor Emeritus of Pediatrics, Pathology, and Decision Science; former Director of the Center for Healthcare Policy at Texas Public Policy Foundation; founding Director of the New Mexico Health Insurance Exchange; and author of award-winning, <\/strong><\/em>Become an Empowered\u00a0Patient<\/strong>. Follow him on X.com@DrDeaneW\u00a0or visit website\u00a0www.empowerpatients.info.\u00a0<\/strong><\/em><\/p>\n

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