Trump order aims to disclose 'real' costs for health care

President Donald Trump signed an executive order Monday that calls for upfront disclosure by hospitals of actual prices for common tests and procedures to keep costs down .

The idea is to give patients practical information that they can use to help save money. For example, if a hospital charges your insurer $3,500 for a type of echocardiogram and the same test costs $550 in a doctor's office, you might go for the lower-price procedure to save on copays.

But insurers said the idea could backfire, prompting hospitals that now give deeper discounts to try to raise their own negotiated prices to match what high-earners are getting.

President Donald Trump speaks during a ceremony where he will sign an executive order that calls for upfront disclosure by hospitals of actual prices for common tests and procedures to keep costs down, at the White House in Washington, Monday, June 24, 2019. (AP PhotoCarolyn Kaster)

Trump's order also requires that patients be told ahead of time what their out-of-pocket costs like deductibles and copays will be for many procedures.

Little will change right away. The executive order calls for a rule-making process by federal agencies, which typically takes months or even years. The details of what information will have to be disclosed and how it will be made available to patients must be worked out as part of writing the regulations. That will involve a complex give-and-take with hospitals, insurers and others affected.

Consumers will have to wait to see whether the results live up to the administration's promises.

"For too long it's been virtually impossible for Americans to know the real price and quality of health care services and the services they receive," Trump said at the White House. "As a result, patients face significant obstacles shopping for the best care at the best price, driving up health care costs for everyone. With today's historic action, we are fundamentally changing the nature of the health care marketplace."

Health and Human Services Secretary Alex Azar told reporters earlier that the order "will put patients in charge and address the drivers of high health care costs...increasing choice and competition."

Lack of information on health care prices is a widespread problem . It's confusing for patients, and experts say it's also one of the major factors that push up U.S. costs. The same test or procedure, in the same city, can cost widely different amounts depending on who is performing it and who is paying the bill. Hospital list prices, which are available, don't reflect what they actually get paid by insurers and government programs.

The health insurance industry said disclosing negotiated prices will only encourage hospitals that are now providing deeper discounts to try to raise their rates to match the top-tier facilities. "Publicly disclosing competitively negotiated proprietary rates will reduce competition and push prices higher — not lower — for consumers, patients, and taxpayers," Matt Eyles, head of the industry group America's Health Insurance Plans, said in a statement.

While the prices Medicare pays are publicly available, private insurers' negotiated rates generally are not. Industry officials say such contractual information is tantamount to trade secrets and should remain private.

Azar pushed back against that argument, saying insurers do ultimately disclose their payment rates when they send individual patients an "explanation of benefits." That's the technical term for the form that patients get after they've had a procedure or seen the doctor.

"Every time one of us goes to a hospital, within a couple of weeks there arrives an explanation of benefits that contains the list price, the negotiated price, and your out-of-pocket cost," Azar said. "This is not some great state secret out there." He said "that information is out there, it just needs to be presented to patients at the right time, in the right format, so it can help drive decision-making for them."

Trump's executive order also calls for:

—expanded uses for health savings accounts, a tax-advantaged way to pay health care bills that has long been favored by Republicans. Coupled with a lower-premium, high-deductible insurance plan, the accounts can be used to pay out-of-pocket costs for routine medical exams and procedures.

—a plan to pull together the government's various health care quality rating systems for hospitals, nursing homes, and Medicare Advantage plans, improving reporting of information to consumers.

—more access by researchers to health care information, such as claims for services covered by government programs like Medicare. The data would be stripped of details that could identify individual patients.

JERUSALEM (AP) — Yemen's Houthi rebels on Saturday claimed shooting down another of the U.S. military's MQ-9 Reaper drones, airing footage of parts that corresponded to known pieces of the unmanned aircraft.

The Houthis said they shot down the Reaper with a surface-to-air missile, part of a renewed series of assaults this week by the rebels after a relative lull in their pressure campaign over the Israel-Hamas war in the Gaza Strip.

U.S. Air Force Lt. Col. Bryon J. McGarry, a Defense Department spokesperson, acknowledged to The Associated Press on Saturday that “a U.S. Air Force MQ-9 drone crashed in Yemen.” He said an investigation was underway, without elaborating.

The Houthis described the downing as happening Thursday over their stronghold in the country's Saada province.

Footage released by the Houthis included what they described as the missile launch targeting the drone, with a man off-camera reciting the Houthi's slogan after it was hit: “God is the greatest; death to America; death to Israel; curse the Jews; victory to Islam.”

The footage included several close-ups on parts of the drone that included the logo of General Atomics, which manufactures the drone, and serial numbers corresponding with known parts made by the company.

Since the Houthis seized the country’s north and its capital of Sanaa in 2014, the U.S. military has lost at least five drones to the rebels counting Thursday's shootdown — in 2017, 2019, 2023 and this year.

Reapers, which cost around $30 million apiece, can fly at altitudes up to 50,000 feet and have an endurance of up to 24 hours before needing to land.

The drone shootdown comes as the Houthis launch attacks on shipping in the Red Sea and Gulf of Aden, demanding Israel ends the war in Gaza, which has killed more than 34,000 Palestinians there. The war began after Hamas-led militants attacked Israel on Oct. 7, killing 1,200 people and taking some 250 others hostage.

The Houthis have launched more than 50 attacks on shipping, seized one vessel and sank another since November, according to the U.S. Maritime Administration.

Houthi attacks have dropped in recent weeks as the rebels have been targeted by a U.S.-led airstrike campaign in Yemen. Shipping through the Red Sea and Gulf of Aden has declined because of the threat. American officials have speculated that the rebels may be running out of weapons as a result of the U.S.-led campaign against them and after firing drones and missiles steadily in the last months. However, the rebels have renewed their attacks in the last week.

A Houthi supporter raises a mock rocket during a rally against the U.S. and Israel and to support Palestinians in the Gaza Strip, in Sanaa, Yemen, Friday, April. 26, 2024. (AP Photo/Osamah Abdulrahman)