Sen. Mike Green signed on to co-sponsor the Michigan Healthcare Transparency Act introduced in the Michigan Senate on Wednesday.
According to studies, the lack of price transparency is a leading cause of rising health care costs, showing variances of up to 700 percent for similar services among different health care providers in the same area. These variances result in higher expenses for employers, workers and insurance companies.
Senate Bill 333, introduced by Sen. Jim Marleu, R-Lake Orion, would create the Michigan Healthcare Transparency Act which would seek to bring transparency to Michigan’s health care market by creating a public price and quality transparency database commonly known as an all-payer claims database.
“Health care costs are out of control,” said Green, R-Mayville. “This common-sense measure will give all health care and insurance consumers the information they need in order to shop around.
“When you go to the grocery store, you can see price tags and product quality before you buy. In healthcare, you often don’t know the cost until you get the bill. This information in the hands of consumers can help cut down on exorbitant medical costs and make medicine more affordable for all Michiganders.”
The public database would be a tool for consumers and employers to make more informed health care choices. The database would indicate where cost shifts are occurring and which providers have good value for outcome, and it would create more competition and better prices and quality.
SB 333 has been referred to the Senate Committee on Health Policy.