Michael Cannon, the director of health policy studies at the Cato Institute, once said, “Healthcare’s future is so bright, I gotta wear shades.” Despite this optimistic outlook, the U.S. healthcare system is troubled by a growing tumour of hidden costs. We must simplify the healthcare system, and make health services as easy as shopping on Amazon or Walmart. I propose a need to promote an open heath pricing system.
While the US spends the largest portion of its annual budget on healthcare, taxpayers often do not get value for every dollar spent. Most of the money is lost through third-party billing systems and not directly utilized by the population. Imagine being forced to pay $50 each month for a meal plan, but instead of picking your food, a third party decides what you get, when you get it, and how much it costs. Ultimately, you might receive a meal worth much less than you paid—or one you didn’t even want. This is similar to our healthcare system, where much of the money goes through middlemen instead of directly benefiting patients.
Why are the true prices often concealed? The reason is simple—the less the average person knows about healthcare pricing, the less right demands can be made. The complexity within the system is leading us into deep forests where pockets are continuously drained. When patients can see and compare costs for medical services, they can control decisions about their care. Open health pricing is like having a clear guide—everyone understands the rules of the game, ensuring fairness for all participants.
Another factor contributing to an increase in healthcare costs is the tax-exemption status of employer-sponsored insurance. This policy creates a market where employees often do not see the actual cost of their health insurance. The tax exemption incentivizes employers to offer more expensive plans with less scrutiny from employees. A system where patients clearly see the worth and value potential healthcare providers bring to the table will create favorable market choices.
Consumer behavior will shift when individuals can determine how to spend their money on healthcare. Several people believe that quality care ought to be expensive. This bias invariably leads to an assumption that the more expensive the care, the better the outcomes. Interestingly, many studies have proven that less could be more. Sometimes, expensive overtreatment leads to complications and poorer prognosis. Therefore, less-invasive procedures with great empathy may yield better results. Every care delivered should be thoughtful, strategic, and transparent.
The goal of healthcare should be to improve patient experience, enhance population health, and reduce costs. We can achieve these by empowering patients with transparent pricing and direct payment options and encouraging patients to participate in price list conversations. As we work towards these reforms, we must also embrace other innovations and competitions that are drivers of efficiency and affordability.
By focusing on open health pricing and reevaluating the tax-exemption status of employer-sponsored insurance, we can expose and eliminate the hidden costs that burden patients and taxpayers alike.
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