Interview of Dr. Todd Schafer by Scott Hennen
BISMARCK, N.D. – A North Dakota House bill would make medical costs more transparent, but a health care executive says it may not be needed.
The bill was introduced by eight State Representatives including Republican Jared Hendrix of West Fargo and Democrat Liz Conmy of Fargo. It would provide a list of standard charges for items or services and shoppable services on a federal list. This is already something in federal law mandated by the Centers For Medicare and Medicaid Services, which is cited in the North Dakota bill. The legislation also penalizes a health care facility $1,000 for each violation and for each day the violation continues plus interest and costs for the state to enforce the penalty.
President and CEO of Sanford Health’s Bismarck region Dr. Todd Schafer says his health system, and other health systems, already provide medical cost information on their websites that share what the estimated deductible and co-pays are for procedures.
Patient Rights Advocate just completed their seventh Semi-Annual Hospital Price Transparency report sampling 2,000 of the approximately 6,600 hospitals in the country finding 21.1 percent in full compliance of the federal medical pricing transparency law.
“It is also very difficult for CMS to determine compliance, as referenced by an OIG report. This bill ensures enforcement and closes gaps where federal law might fall short. State-level legislation can address local healthcare market dynamics, enforce compliance with unique penalties, and clarify requirements to make transparency meaningful for patients. Federal penalties may not always be sufficient to incentivize compliance, especially for hospitals with larger budgets. Additionally, as mentioned earlier, it is still very time-consuming for CMS to keep up to date with all hospitals. State-level penalties provide a localized deterrent and allow for tailored enforcement strategies that reflect the healthcare needs and priorities of the state’s residents. It also sets the stage for additional consumer incentives to use price and quality to determine value,” Hendrix said in a statement.
