Empowering consumers and increasing healthcare cost transparency
The Senate approved a health and human services budget bill this week, which has stirred considerable controversy. It fails to address the complexity and high costs of healthcare in Minnesota. The bill falls short of making it more accessible, affordable, and of higher quality.
Unfortunately, Democrats rejected our efforts to improve the bill to some degree with commonsense amendments.
I offered several of those amendments, including one to give insurance the option to offer reference-based healthcare pricing in Minnesota. Reference-based pricing is straightforward a way to control healthcare costs and improve transparency. Here is how it works:
Basically, health insurance providers decide on a set amount of money they are willing to pay for a certain service, like a doctor's visit. This set amount is called the "reference price," and it's usually based on how much that service costs in the area where you live. If your doctor charges more than the reference price, you may have to pay the extra amount that your insurance or employer won't cover. So it encourages people to shop for the best price, and it encourages providers to offer competitive (and lower) prices for services.
Watch my floor comments explaining this amendment and why it is so vital for Minnesota: