Health Care Transparency and Accountability Act
Purpose: To reform the U.S. health care system by restoring free-market principles, simplifying payment structures, improving price transparency, and reducing bureaucratic overhead. This act aims to address inefficiencies caused by government-imposed wage restrictions from World War II that entrenched employer-sponsored health insurance, leading to opaque and inflated health care costs.
Section 1: Direct Patient-Provider Payment Model
1. Abolition of Employer-Based Health Insurance Tax Advantages:
• Repeal the tax-exempt status of employer-sponsored health insurance. This removes the historical advantage that incentivizes employer-based health care, encouraging a shift to a patient-centered, direct payment system.
• Health insurance and health-related expenses will be treated uniformly across individuals, whether employed or self-employed. Tax credits or deductions for individual purchases of health insurance will be implemented, encouraging personal responsibility.
2. Encouragement of Direct Payments:
• Establish a framework for patient-provider direct payments, minimizing the reliance on third-party intermediaries (insurance companies, employers).
• Support the creation of Health Savings Accounts (HSAs) with higher contribution limits, allowing individuals to pay directly for medical services.
• Introduce tax-free incentives for patients who choose direct payment options, thus lowering administrative costs tied to third-party payers.
Section 2: Health Care Price Transparency
1. Mandatory Price Disclosure:
• All health care providers (hospitals, clinics, independent practitioners) must publish clear and upfront prices for all procedures, tests, medications, and services. This pricing must be accessible to the public via online platforms and standardized formats.
• Providers who fail to comply will face penalties, including fines and loss of eligibility to accept federal health care funding (e.g., Medicare, Medicaid).
2. Simplified Billing Practices:
• Implement standardized billing procedures across the health care system to eliminate vague and inconsistent charges.
• Require that hospitals and providers present itemized bills to patients prior to service, clearly showing each service and its associated cost.
Section 3: Deregulation of Insurance Markets
1. Cross-State Insurance Competition:
• Allow health insurance providers to sell policies across state lines, fostering a competitive national market and increasing consumer choice. States may opt into national regulatory compacts to ensure minimum standards while reducing regional monopolies.
2. Customizable Insurance Plans:
• Deregulate insurance plan requirements, enabling individuals to purchase customizable health insurance plans that suit their needs without mandated coverage of services they do not require (e.g., certain specialized treatments, elective procedures).
• Encourage the growth of catastrophic insurance plans that cover significant health events, allowing everyday care to be paid directly by patients.
Section 4: Hospital and Health Care System Accountability
1. Third-Party Payment Reform:
• Limit the use of third-party payers (e.g., hospitals subcontracting with doctors and third-party contractors) to reduce administrative layers that inflate health care costs.
• Require that any third-party contractors involved in patient care must also adhere to price transparency requirements.
2. Audit and Oversight:
• Establish an independent, non-governmental oversight committee to audit hospital and insurance practices to ensure fair pricing, prevent overcharging, and hold parties accountable for price inflation.
• Regular audits of health care institutions to ensure compliance with transparency and fair pricing laws.
Section 5: Enhancing Individual Health Care Access
1. Expansion of Telemedicine and Independent Clinics:
• Encourage telemedicine and independent clinics by reducing regulatory burdens and fostering competition with large hospital networks.
• Provide tax incentives for independent practitioners and clinics that offer low-cost services, especially in underserved areas, encouraging greater care access without relying on government funding.
2. Medical Education and Workforce Development:
• Provide tax incentives for health care professionals who commit to providing care in rural or underserved areas.
• Allow for regulatory easing for new and independent health care providers to set up low-cost practices, increasing market competition and options for patients without requiring government grants or subsidies.