President Bush Signs Executive Order For Price Transparency

August 23, 2006

     President Bush's executive order requiring four government agencies to increase price transparency and encourage patients to make more informed choices about their health care is a bold step in the right direction, according to Devon Herrick, senior fellow with the National Center for Policy Analysis (NCPA).

     "The private sector has been working to lift the veil of secrecy covering health care pricing," said Herrick. "With the government now doing the same, we can make longer strides toward giving patients more choice in their health care decisions."

     The executive order will apply to the departments of Health and Human Services (HHS), Defense (DOD), Veteran's Affairs (VA) and the Office of Personnel Management (OPM). Data on health care quality and cost will be assembled by each agency and made available to their customers and each other.

     The executive order instructs the agencies to:

• Develop and use interoperable technology to share electronic health information.
• Develop quality and efficiency standards for all doctors and hospitals who work with the agencies.
• Provide pricing information for health care services to all beneficiaries of each agency, and
• Nurture relationships with health care entities who can provide consumer-driven health care options to agency beneficiaries.

     The federal government is the largest purchasers of health care services in the U.S. By implementing these steps toward a more consumer-based, cost-conscious model, the Administration hopes to lead the way into a more patient-focused future for the nation's health care system.

     "The agencies covered by the executive order provide insurance to nearly one quarter of the insured in the U.S.," continued Herrick. "With his signature, President Bush has empowered over ten million people with the ability to make better decisions about their most important asset: their health."

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