New Virginia Law Seeks to Promote Price Transparency in Healthcare

Abstract

The business of healthcare is uniquely different from any other.  Consumers of any other business have an idea how much a good or service will cost them before they go to the check-out line.  Grocery and department stores clearly mark prices on their products.  Mechanics and attorneys provide rates and estimates prior to working on one’s car or accepting one’s case.

Healthcare is starkly different in price transparency.  Medical tests and procedures are ordered for patients without any acknowledgement of cost or what is not covered by the patient’s insurance plan.  Most patients discover the cost approximately 30 days after the test or procedure.  This process leads patients to “sticker shock” and is the basis for comments like “I would not have had that test if I knew it was going to cost that much” or “I should have shopped around to see where I could have gotten the same procedure for less.”

The Commonwealth of Virginia has stepped in to promote price transparency.