Mr. Coburn, an Oklahoma Republican, was a U.S. senator from 2005-15. He is a Manhattan Institute fellow.
Here’s a simple idea to help lower health-care costs: publish prices. A bipartisan group of state lawmakers in Colorado is pushing a bill to do precisely that. The Comprehensive Health Care Billing Transparency Act would allow Coloradans to see the true price of any health service they use—exams, procedures, prescriptions—before they undertake treatment.
If passed, the legislation would mandate that hospitals and other facilities disclose the base fees they charge for specific services “before applying any discounts, rebates, or other charge adjustment mechanisms.” Every bill sent to a patient would need to include an itemized list, which would allow patients to see if a service had been marked up. By making such information available upfront, the legislation would reintroduce competition to Colorado’s opaque health-care markets.
The bill is the brainchild of Denver businessman David Silverstein, who made news last year when he suggested that consumers stop paying their medical bills until providers show how they arrived at the prices being charged. Mr. Silverstein is the founder of BrokenHealthcare.org, a nonprofit that hopes other states will follow Colorado’s lead in legislating greater health-care transparency.
As profound a change as the Colorado bill represents, all it really would do is let consumers deal with health care the way they do any other product or service. Think about it: When you want to buy a car, you shop around, comparing the quality and price of competing models and the offerings at different dealerships. The same is true for practically everything else Americans buy: refrigerators, houses, office supplies, washing machines, computers, and on and on.