Both parties in Congress are working to advance legislation on hospital price transparency before the August recess. Committees in the House and Senate are voting this week on bipartisan bills that would require hospitals to publicly post their prices for routine procedures. This initiative aims to allow patients to shop for affordable care and potentially reduce healthcare costs.
In 2023, hospitals accounted for 31% of nearly $5 trillion in healthcare spending in the United States. The push for hospital price transparency has been a goal of Republican health policy for nearly a decade and has gained traction as healthcare affordability becomes a significant concern for voters ahead of the 2026 midterm elections.
The House Energy and Commerce Committee is set to consider the Lower Costs, More Transparency Act, introduced by Chairman Brett Guthrie (R-KY) and ranking Democrat Frank Pallone (D-NJ). Similarly, the Senate health committee will review the Patients Deserve Price Tags Act from Senators Roger Marshall (R-KS) and John Hickenlooper (D-CO).
These bills aim to address shortcomings in previous executive orders from former President Donald Trump that required hospitals to post prices. Critics have argued that the Biden administration did not enforce these rules effectively.
Marshall stated that his goal is to close loopholes and establish a penalty structure for noncompliance. The proposed legislation mandates hospitals to publicly list prices for routine procedures, with fines for noncompliance based on hospital size.
For instance, the House bill imposes fines starting at $300 per day for smaller hospitals and scaling up to $25 per bed per day for larger hospitals. The Mayo Clinic Hospital Saint Mary’s Campus, with 1,265 beds, could face fines of $31,625 for a single day of noncompliance.
Marshall's bill also seeks to enhance oversight of price transparency between hospitals and health insurance plans, allowing consumers to know procedure prices in advance. He emphasized that clarity in pricing could be beneficial for scheduled procedures and certain emergency situations, such as hip fractures.
Marshall acknowledged the efforts made to ensure the legislation is effective, stating, "We’ve never made a bigger effort than we have on this bill to get it right."