[Congressional Record (Bound Edition), Volume 152 (2006), Part 13]
[Extensions of Remarks]
[Page 17900]
[From the U.S. Government Publishing Office, www.gpo.gov]




     INTRODUCTION OF THE HEALTH CARE PRICE TRANSPARENCY ACT OF 2006

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                        HON. MICHAEL C. BURGESS

                                of texas

                    in the house of representatives

                      Tuesday, September 12, 2006

  Mr. BURGESS. Mr. Speaker, we currently have a health care system that 
is badly in need of reform. However, in the tangled mess of medical 
bureaucracy, no one has a clear picture of the problem. Physicians and 
other providers don't get paid enough, patients pay too much, many 
people don't get any care at all, and everyone claims that someone else 
needs to change. Before we start changing things, though, it seems 
prudent to understand the problem fully. Today, I have introduced 
legislation with that goal in mind. This is a first step toward true 
price transparency in the health care market.
  The Health Care Price Transparency Act of 2006 is a long-term 
solution to runaway medical costs. This bill calls upon the States to 
establish and maintain laws requiring disclosure of information on 
hospital charges, to make such information available to the public, and 
to provide individuals with information about estimated out-of-pocket 
costs for health care services. This means that State law will require 
health insurance providers to give patients an actual dollar estimate 
of what the patient must pay for health care items and services within 
a specified period of time.
  Additionally, the bill calls for research on: (1) The types of cost 
information that individuals find useful in making decisions regarding 
healthcare; (2) how this useful information varies according to an 
individual's health insurance coverage, and if so, by what type of 
coverage they have; and (3) ways that this information may be 
distributed in a timely and simple manner.
  These are simple but important provisions. The current health 
insurance system has insulated people from the actual cost of the 
medical care they receive. By pulling back the curtain on opaque areas 
of the health care market, over time, this legislation will lead to the 
development of a more rational pricing structure from the consumer's 
perspective. Once we understand the actual cost, then we can begin to 
make effective changes leading to fair physician reimbursement, 
appropriate patient billing, and better medical services.
  In August, President Bush issued an executive order calling for 
increased transparency within the Federal Government's health care 
agencies. This legislation is an extension of that executive order, 
giving States the tools to become part of a necessary solution for 
health care consumers.

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