PRESS-NEWS.org - Press Release Distribution
PRESS RELEASES DISTRIBUTION

Information technologies could remove the 'shroud of secrecy' draped across private health care cost

2013-12-03
(Press-News.org) Contact information: B. Rose Huber
brhuber@princeton.edu
609-258-0157
Princeton University, Woodrow Wilson School of Public and International Affairs
Information technologies could remove the 'shroud of secrecy' draped across private health care cost

PRINCETON, NJ—The "shroud of secrecy" once draped across private health care service costs could be lifted with innovative information technologies, Princeton University professor Uwe Reinhardt wrote in a review published by the Journal of the American Medical Association (JAMA).

Until recently, private health care costs have been hidden within a "health care fortress," and increasing amounts of money have vanished behind its walls, Reinhardt writes. This has made it difficult for consumers to understand the actual cost of health care. Reinhardt cites reference pricing – the cost consumers anticipate paying or consider reasonable to pay – as a possible solution for cost-containment.

"The idea that American patients should 'shop around for cost-effective health care' so far has been about as sensible as blindfolding shoppers entering a department store in the hope that inside they can and will shop smartly for the merchandise they seek," said Reinhardt, James Madison Professor of Political Economy and professor of economics and public affairs at Princeton's Woodrow Wilson School. "In practice, this idea has been as silly as it has been cruel."

But electronic informational technologies are now providing a better means of transparency. One example is an independent website called Healthcare Blue Book, which boasts a search function of "fair prices" by zip code for hospital and physician services, laboratory tests and imaging services. Similarly, a start-up company on the West Coast has developed software that provides employees covered under group insurance both the prices and quality of care by individual clinicians and health care organizations. That group is looking to introduce reference pricing – the cost consumers anticipate paying, or consider reasonable to pay, for a particular good or service.

Reference pricing was first introduced in Germany during the 1990s to control the price of pharmaceuticals. But the concept can be applied more broadly, Reinhardt writes, and could influence health care transactions.

Under this method, insurance providers would pay a set amount for a medical procedure based on the lowest price range available for that procedure. If the patient chose a hospital with a higher fee, the patient would then have to pay the difference. Reinhardt describes this as a form of cost sharing that is "much more blunt and powerful than coinsurance." By enlisting raw price competition, reference pricing could turn out to be the "sleeper" in cost-containment efforts in U.S. health care, Reinhardt said.

"The power of reference pricing could be enhanced if all hospitals were mandated to use Medicare's diagnosis-related group system for all patients, with every hospital using the same scale," said Reinhardt. "Broad price competition in U.S. health care could then occur on the basis of only one single number: the monetary conversation factor, which could be easily made public."

Reinhardt writes that those who provide health care in the United States may not be "charmed" by this and other disruptive changes headed their way.

"But the health insurance system was never designed to be fair. It is beside the point. The point is that in developing their next strategic 5-year plans, planners among the providers of health care must include new innovations, like those that promote price and cost transparency into their plans," he said.



INFORMATION:

The review, "The Disruptive Innovation of Price Transparency in Health Care" was published online Nov. 13 in JAMA. Regarding potential conflicts of interest, Reinhart reports serving as a board member for Boston Scientific and H&A Capital Management; holding stock in Boston Scientific; and receiving payment for lectures from various associations.



ELSE PRESS RELEASES FROM THIS DATE:

Kids whose bond with mother was disrupted early in life show changes in brain

2013-12-03
Kids whose bond with mother was disrupted early in life show changes in brain Children who experience profound neglect have been found to be more prone to a behavior known as "indiscriminate friendliness," characterized by an inappropriate willingness ...

UCSB researcher shows microplastic transfers chemicals, impacting health

2013-12-03
UCSB researcher shows microplastic transfers chemicals, impacting health Study demonstrates plastic ingestion delivers pollutants and additives into animal tissue (Santa Barbara, Calif.) — With global production of plastic exceeding 280 metric ...

Bronchial thermoplasty shows long-term effectiveness for asthma

2013-12-03
Bronchial thermoplasty shows long-term effectiveness for asthma Data show improvements maintained for 5 years after procedure DENVER – The beneficial effects of bronchial thermoplasty, a non-pharmacologic treatment for asthma, last at least five years, ...

Integrated pest managment techniques can help manage the Bagrada bug

2013-12-03
Integrated pest managment techniques can help manage the Bagrada bug The Bagrada bug, an invasive stink bug, was discovered in the western hemisphere in 2008 near Los Angeles, CA, presumably introduced via container shipments arriving at the Port of ...

A new weapon in the war against superbugs

2013-12-03
A new weapon in the war against superbugs Tel Aviv University researchers find a protein that viruses use to kill bacteria In the arms race between bacteria and modern medicine, bacteria have gained an edge. In recent decades, bacterial resistance to ...

Energy drinks plus alcohol pose a public health threat

2013-12-03
Energy drinks plus alcohol pose a public health threat ANN ARBOR—Mixing energy drinks with alcohol is riskier than just drinking alcohol alone, according to a new study that examines the impact of a growing trend among young adults. Published in the current issue ...

A living desert underground

2013-12-03
A living desert underground In the perpetual darkness of a limestone cave, UA researchers have discovered a surprisingly diverse ecosystem of microbes eking out a living from not much more than drip water, rock and air Hidden underneath the hilly grasslands studded ...

Ethnic identification helps Latina adolescents resist media barrage of body images

2013-12-03
Ethnic identification helps Latina adolescents resist media barrage of body images CORVALLIS, Ore. – A strong sense of ethnic identity can help Latina girls feel positive about their body and appearance, a new study concludes, even as this group ...

Aerobic fitness and hormones predict recognition memory in young adults

2013-12-03
Aerobic fitness and hormones predict recognition memory in young adults (Boston) – Researchers at Boston University School of Medicine (BUSM) have found further evidence that exercise may be beneficial for brain health and cognition. The findings, which ...

'Designer sperm' inserts custom genes into offspring

2013-12-03
'Designer sperm' inserts custom genes into offspring New research in The FASEB Journal suggests that altering genes in sperm and then inducing fertilization, produces new genes that are present and active in the embryos and inherited ...

LAST 30 PRESS RELEASES:

First-in-human trial shows promising results for DLL3-targeted antibody-drug conjugate SHR-4849 in relapsed small cell lung cancer

Ifinatamab deruxtecan demonstrates high response rate in previously treated extensive-stage small cell lung cancer: Phase 2 IDeate-Lung01 trial

Higher blood pressure in childhood linked to earlier death from heart disease in adulthood

AI helped older adults report accurate blood pressure readings at home

High blood pressure in childhood and premature cardiovascular disease mortality

Zidesamtinib shows durable responses in ROS1 TKI pre-treated NSCLC, including patients with CNS disease and ROS1 G2032R mutations

Crizotinib fails to improve disease-free survival in resected early-stage ALK+ NSCLC

Ivonescimab plus chemotherapy improves progression-free survival in patients with EGFR+ NSCLC following 3rd-generation EGFR-TKI therapy

FLAURA2 trial shows osimertinib plus chemotherapy improves overall survival in eGFR-mutated advanced NSCLC

Aumolertinib plus chemotherapy improves progression-free survival in NSCLC with EGFR and concomitant tumor suppressor genes: ACROSS 2 phase III study

New antibody-drug conjugate shows promising efficacy in EGFR-mutated NSCLC patients

Iza-Bren in combination with osimertinib shows 100% response rate in EGFR-mutated NSCLC, phase II study finds

COMPEL study shows continuing osimertinib treatment through progression with the addition of chemotherapy improves progression-free survival in EGFR-mutated NSCLC

CheckMate 77T: Nivolumab maintains quality of life and reduces symptom deterioration in resectable NSCLC

Study validates AI lung cancer risk model Sybil in predominantly Black population at urban safety-net hospital

New medication lowered hard-to-control high blood pressure in people with chronic kidney disease

Innovative oncolytic virus and immunotherapy combinations pave the way for advanced cancer treatment

New insights into energy metabolism and immune dynamics could transform head and neck cancer treatment

Pennington Biomedical’s Dr. Steven Heymsfield named LSU Boyd Professor – LSU’s highest faculty honor

Study prompts new theory of human-machine communication

New method calculates rate of gene expression to understand cell fate

Researchers quantify rate of essential evolutionary process in the ocean

Innovation Crossroads companies join forces, awarded U.S. Air Force contract

Using new blood biomarkers, USC researchers find Alzheimer’s disease trial eligibility differs among various populations

Pioneering advances in in vivo CAR T cell production

Natural medicines target tumor vascular microenvironment to inhibit cancer growth

Coral-inspired pill offers a new window into the hidden world of the gut

nTIDE September2025 Jobs Report: Employment for people with disabilities surpasses prior high

When getting a job makes you go hungry

Good vibrations could revolutionize assisted reproductive technology

[Press-News.org] Information technologies could remove the 'shroud of secrecy' draped across private health care cost