White House runs into health-care industry hostility as it plans executive order

[corbe]

White House runs into health-care industry hostility as it plans executive order

Amy Goldstein and Josh Dawsey
 
2 hrs ago
 
President Trump is preparing to issue an executive order to foster greater price transparency across a broad swath of the health-care industry as consumer concerns about their costs for medical treatment emerge as a major issue in the leadup to next year’s presidential election.

The most far-reaching element favored by the White House aides developing the order would require insurers and hospitals to disclose for the first time the discounted rates they negotiate for services, according to health-care lobbyists and policy experts familiar with the deliberations.

The idea has stirred such intense industry opposition, however, that it may be dropped from the final version, the sources said.

Compelling disclosure of negotiated rates “would have the ultimate anti-competitive effect,” said Tom Nickels, the American Hospital Association’s executive vice president for government relations and public policy. I know they are aware of the concerns.”

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http://www.msn.com/en-us/news/us/white-house-runs-into-health-care-industry-hostility-as-it-plans-executive-order/ar-AAC5U7w?ocid=ientp

[Applewood]

Ok, my pea brain is a bit confused.  How does disclosure of negotiated discounted rates adversely affect competition? 

[thackney]

...the discounted rates they negotiate for services...

Back in the day, I was with a engineering firm doing work for Enron.  Our company made a mistake when we requested a quotation for several very large valves on a gas pipeline job.  We sent the paperwork out in our name.  We did not make clear the purchaser was going to be Enron, who was a major buyer of these valves and had pre-negotiated rates on different sizes and ratings.

When the mistake was noticed, we sent the RFQ out again making clear it was Enron buying.  The quote came back 10% higher for Enron than the basic off-the-street pricing.

This was something like $75~85k each for a couple dozen.  It made quite a difference.