The well-informed, important conversations with their physicians to

Even with health insurance, many Americans are quietly drowning in medical debt. This issue is especially prevalent among patients receiving cancer treatments. In a study published in JAMA Oncology, the price for one month of an oral-cancer medication was found to have increased from $1,869 in 2000 to $11,325 in 2014, which makes the medication cost even more now (Olen, par. 18).

With rising medical costs, current cancer treatments amount to about $30,000 to $50,000 annually, making it hard for patients to afford necessary life-saving treatments (Olen, par. 18). With more transparent pricing, patients will be able to plan ahead and budget accordingly to avoid financial burden from unexpected charges. When patients know the costs, they can have well-informed, important conversations with their physicians to explore better and less expensive options. Transparency in pricing will also help reduce the amount of uncompensated care which negatively affects taxpayers and causes the closing of many rural hospitals. According to TransUnion, a company that assists hospitals in collecting unpaid bills, over two-thirds of patients did not pay their entire bills in 2016 and that fraction is expected to increase to 95 percent by 2020 (LaVito, par. 1).

For example, physicians may refer patients to facilities offering lower costs and better quality. As a result, there will be lowered readmission rates and visits to the emergency room (Livingston 32). With the knowledge of different prices, people can compare and determine what is best for their health and at the same time, improve efficiency. Efficiency is crucial as there are already so many healthcare issues such as excessive administrative duties that cut down doctor visit times and physician shortages in places where there are significant health disparities. The lack of transparency contributes to rising medical costs as it drives price variation and makes it easier for providers to take advantage of consumers.When it comes to making decisions about when and where to seek medical services, consumers have little to no consideration on prices (Limbacher, 949). This is largely due to non transparent costs which fuel price variation as different hospitals charge drastically different prices for the same treatment (Friedman, 127). For example, the average cost for a knee replacement in South Carolina is about $47,000, while the average cost for the same procedure in New Jersey is only $24,000 (Herman par.

6). With no plausible reasoning for the widespread variation in hospital costs, patients are subjected to unfair circumstances as these prices are not disclosed publicly beforehand. Nontransparent pricing also leads to inelastic demand which allows providers to arbitrarily hike up prices as they know consumers will pay for treatments no matter how absurd the costs become (Limbacher, 950). By listing prices of medical tests, procedures, and other treatments, it will encourage competition among providers and ultimately bring down costs. More transparency needs to be established to fight corrupt providers and unfair prices. Some may argue that knowing the price of medical services will hinder people from getting necessary medical treatment and shift the focus of medicine from caring for others’ health to cold business.