Committee Approves Burgess-Green Amendment To Promote Transparency In Health Care Costs

Press Release

Committee Approves Burgess-Green Amendment To Promote Transparency In Health Care Costs

Today, during the resumed mark-up in the House Energy and Commerce Committee of HR 3200, America's Affordable Health Choices Act of 2009, Congressman Michael C. Burgess, M.D. (R-Texas) and Congressman Gene Green (D-Texas) offered a bipartisan amendment to promote transparency in health care costs. The amendment was approved unanimously by the Committee and aims to make health care more affordable by promoting greater transparency about the costs of health care services for patients seeking care.

"This amendment is an example of Republicans and Democrats working together in a bipartisan way to make meaningful reforms to our country's health care system. It will give patients more choices and more control over their health care decisions by providing up-front information on cost," Burgess said. "Restaurants have menus displaying the prices of the products they offer, why should hospitals providing health care services be any different? A patient should be able to know what they are paying for and how much they will pay out-of-pocket. This is an important step in improving our country's health care system by focusing on patients."

Health care costs are increasing at an alarming rate. In 2008, total national health expenditures rose more than 6.9 percent -- two times the rate of inflation. Total spending was $2.4 trillion in 2007, or $7900 per person. Total health care spending represented 17 percent of the gross domestic product. Furthermore, U.S. health care spending is expected to increase at similar levels for the next decade, reaching $4.3 trillion in 2017, or 20 percent of GDP.

"Our current health care system needs to be reformed, and this amendment is an example of Democrats and Republicans putting their differences aside to give Americans better health care. Unfortunately, with all of the bureaucracy and paperwork, few people including patients and physicians know where money is going. This makes it hard to identify the base problem and begin to help curb increasing health care costs," said Rep. Green. "This amendment will be a first step in a long-term solution to clear up the confusion, and will let us move towards affordable, quality health care for all Americans."

Reps. Burgess and Green introduced HR 2249, the Health Care Price Transparency Promotion Act, on May 5, 2009. The amendment is based largely on this bill, but goes a step further to provide consumers more information on out-of-pocket costs.

The American Hospital Association notes that there is evidence of the ongoing success of states and state hospital associations to collect and disseminate hospital pricing information. The amendment directs states to establish and maintain laws requiring disclosure of information on hospital charges. Additionally, the amendment requires hospitals and health plans to make such information available to the public, and to provide individuals with information about estimated out-of-pocket costs for health care services.

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