Wyoming legislators get serious about hospital pricing

The Wyoming Legislature is considering a bill that would require hospitals in the state to post prices. The language of SF 57 would essentially force hospitals to list prices for services and materials, which would allow patients to become informed consumers of health care.

Interestingly enough, the United States Congress passed a similar law in 2021. Hospitals have almost uniformly chosen to ignore the law, and the federal government has elected not enforce it. In our federalist government, state elected officials are now taking the responsibility of putting patients first.

The fundamental problem with our health care system is that someone else, a third party, pays for the vast majority of our care. Over half of all Americans receive their health care from their employer or their spouse’s employer. Forty percent of Americans receive medical care from the government through Medicare, Medicaid, and Obamacare.

Health care costs in the United States continue to rise because our health care system is not subject to the same competition that occurs in other economic areas. It would be laughable to think that grocery stores wouldn’t post their prices or that consumers would have no idea of home prices or the cost of clothing. Yet because of third-party payers and a convoluted insurance industry, our health care system lacks fundamental competition.

As co-pays and out-of-pocket expenses go up for patients, hospitals and doctors should provide their pricing. This would show respect for patients and allow them to become informed consumers of health care. When people spend their own money, they become smart shoppers. This is true of health care, as well.

This shift would be a major change for all providers and patients, but in other areas of life, Americans have a long history of consumerism. Through second opinions, consumer reports, the Internet, and other tools, most patients would learn to make informed and wise health care decisions.

Wyoming legislators should be congratulated for taking the lead on hospital price transparency. Since the federal government won’t enforce their own law, elected officials in other states should follow Wyoming’s example and consider their own hospital price transparency legislation.