Hope

Springs Eternal

Trump Administration Pushes To Make Health Care Pricing More Transparent

President Trump signed an executive order Monday on price transparency in health care that aims to lower rising health care costs by showing prices to patients. The idea is that if people can shop around, market forces may drive down costs. 

"Hospitals will be required to publish prices that reflect what people pay for services," said President Trump at a White House event. "You will get great pricing. Prices will come down by numbers that you wouldn't believe. The cost of healthcare will go way, way down."

Like several of President Trump's other health policy-related announcements, today's executive order doesn't spell out specific actions, but directs the department of Health and Human Services to develop a policy and then undertake a lengthy rule-making process.

 DYI Quick Comment:  The devil is in the details!

 "Today patients don't have access to prices or choices or even ability to see quality," said Cynthia Fisher, founder of a group called Patient Rights Advocate. "I think the exciting part of this executive order is the President and administration are really moving to put the patient in the driver's seat and be empowered for the first time with knowledge and information."

DYI:  Hope does spring eternal!  If this has any teeth [and is not repealed by the next president] if done correctly will drop prices considerably.  My suspicion he will not want this to go into effect until after his upcoming reelection bid for when this goes into effect will cause a short term depression. 

That is correct depression, not recession, as health care will move back from 21 percent of the economy to around 5% to 7%.  Any decline in GDP past 10% contraction is considered a depression.  Of course there is a silver lining as all of this money begins to shift into the other parts of the economy – a two year lag time – the economy will roar back pulling many back into the work forces who have simply given up.  If we could go back and reregulate the banks real estate cost would will come back to earth allowing the millennial generation the ability to form new households.  As it stands now most have relegated themselves permanently living with their parents.  Do away with student loans thus dropping the cost significantly for higher education ending many young people from the very real possibility of being debt slaves for the majority of their lives.  These 3 areas if addressed in this manner will open the flood gates to real growth in the economy.

Back to Trump and health care we will not see any meaningful details for at least a year possibly two.  Until then I’ll be on the lookout for details.

DYI