Policymakers need to be realistic about the potential gains from price transparency, said health economist Paul B. Ginsburg, PhD, President of the Center for Studying Health System Change, in testimony before the House of Representatives hearing on how to provide consumers better information about healthcare costs. He pointed out that most of the 10% of people responsible for 70% of health spending will not be affected by “incentives to economize” because they will have exceeded their deductible and often the maximum out-of-pocket spending. He also pointed out that the benefit structure of managed care plans often means that consumers actually receive little or no financial benefit from choosing a low-cost provider. The government, said Ginsburg, should not interfere with the relationship between health plans and patients and “should focus instead on the needs of those without insurance.”
