Minnesota State Wire

Federal rules finalized in November combined with state legislation passed and signed in April are important steps to improving transparency and affordability in health care say Minnesota state Senate Republicans.

Reforms designed to give patients more information before making decisions, improve accessibility to cost and insurance data, and lead to better outcomes, competition, and innovation went through at the state level first. 

The Minnesota legislature passed two bills, written by Sen. Rich Draheim (R-Madison Lake), in April. Gov. Tim Walz (D) signed the bills later the same month. Health care facilities in the state must disclose hidden fees. Hospitals must give patients billed charges in an itemized form within 30 days of being discharged.

“No one should have to spend months calling their doctor or hospital to get an explanation of their charges,” said Draheim at the time of the bills' passage in April. “They should be presented upfront, just like when you take your car in for repair or get an estimate for home repairs.”

Federal rules from the U.S. Department of Health and Human Services, finalized Nov. 15, will require hospitals to give patients better information on “standard charges” and require insurance providers to give consumers more specific, clearer information prior to a medical decision or joining or changing a policy. The rules are part of implementing an executive order signed by President Donald Trump in June.

The Transparency in Coverage rule requires insurance issuers, for individual or group plans, and employer-based insurance plans to disclose price and cost-sharing information to consumers, or prospective consumers, before making medical decisions or joining a policy. Making such data more standardized and accessible will help individuals while leading to better innovation and competition in care and insurance say Minnesota and federal officials.

“Health care has become more complicated and challenging for the average consumer,” said Sen. Mike Goggin (R-Red Wing). 

“We have worked to make this system better for Minnesotans by enforcing price transparency so people know what their care will cost,” he said. 

The new HHS rule regarding “standard charges” for items and services up front will go into effect Jan. 1, 2021. It is part of the Outpatient Prospective Payment System and Ambulatory Surgical Center Price Transparency Requirements for Hospitals to Make Standard Charges Public rule.

“Under the status quo, healthcare prices are about as clear as mud to patients,” said Seema Verma, Centers for Medicare and Medicaid Services administrator.

Verma said more transparency for consumers will make for better competition amongst providers and insurers, reducing costs throughout the system and giving patients more control.

“As the federal government takes steps to make similar improvements,” said Goggin, “we can look forward to an improved health care system that will work for everyone without wasting tax dollars on more bureaucracy.”

The two Draheim bills passed the state senate by a combined vote of 133-1. Walz signed the laws April 19.