ARLINGTON, VIRGINIA – States across the country are grappling with the alarming rise in healthcare costs, and New Jersey is no different. A recent survey found that a staggering 85% of Garden State residents are worried about their ability to afford healthcare. To combat this growing crisis, ACI applauds efforts to increase transparency in hospital pricing and protect patients from unexpected financial burdens.
In addition to pricing transparency, healthcare leaders must remain committed to containing costs. In New Jersey, an agreement among hospitals known as the Health Care Affordability, Responsibility, and Transparency (HART) Program can provide some relief. The HART Program is not a mandate but a voluntary pact between state leaders and executives in the healthcare industry. Hospitals and insurers willingly agreed to “cost growth benchmarks” to curb price hikes and improve cost transparency. ACI encourages every group involved to remain accountable to their prior commitment. See the latest reports here.
Healthcare cost increases in the past 20 years have outpaced inflation, making it less affordable for patients. Such increases mean lawmakers should be prioritizing ways to make such a vital expenditure more affordable. Pricing transparency is one such solution. Straightforward healthcare pricing alleviates financial burdens, reduces anxiety around healthcare costs, empowers patients to make informed decisions and encourages competition among healthcare providers.
Recent efforts have been made at the federal and state levels to regulate pricing transparency and make it easier for patients to understand the cost of a procedure before receiving a bill. Yet only less than 10% of New Jersey hospitals fully comply with the Centers for Medicare and Medicaid Services’ (CMS) federal regulations on pricing transparency, according to a consumer advocacy group known as Patient Rights Advocate.
State Senator Joe Vitale recently introduced a bill in New Jersey, which essentially mirrors the CMS regulations already required, but gives the state power to actually enforce hospital compliance. New Jersey residents deserve more from their healthcare leaders.
If New Jersey remains committed to the voluntary HART Program and improves pricing transparency, residents will be better served, and the healthcare system will be more accessible and affordable.
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