Bipartisan legislation chief-authored by Senator Rich Draheim that aims to lower the cost of health care through price transparency passed the Minnesota Senate overwhelmingly on Tuesday, May 1. The bill would require health care providers to give individuals a good faith estimate of the total health care costs a patient will be required to pay for a procedure or treatment within ten days. Additionally, the legislation requires a health care provider to publicly post the prices of their top 25 most frequent procedures in their reception area and on their website.

“There is virtually no other industry besides health care where an individual is unaware of the price of what they are purchasing,” said Senator Draheim. “In this digital age, there is no reason why a patient should not know the full costs of their health care. By providing transparent pricing, individuals can make wise choices that work for them.”

In addition to the top 25 most frequently billed procedures, the bill requires health care providers to provide the costs of the ten most frequent evaluation and preventative services. The price list for all procedures must include the provider’s cash pay rate, the average insurance reimbursement rate, the Medicare rate, and the Medical Assistance rate for each item.

“If patients know the true cost of their health care, individuals will not only “shop around”, but they will be empowered to have conversations with their physicians on how to drive down their own health care costs,” added Senator Draheim. “In the Lasik eye industry, the cost of surgery has decreased immensely over the years due to transparent pricing. It’s time to apply that logic to all of health care.”

This legislation was the result of the bipartisan Minnesota Senate Select Committee on Health Care Consumer Access and Affordability, of which Senator Draheim is a member. The committee met over the course of the last nine months to develop a bipartisan health care reform bill for the 2018 session. The bill passed the Senate on a 65-2 vote. It now heads to the House of Representatives for a vote.