Ignore the fact that the prices paid for the healthcare in the US are twice than what is paid in other countries of the world, rather, just focus on the fact that if we got to know the real prices this will result in a further increase in prices. If that were not false, consider what we would pay for the electricity, food, or petrol.
There won’t be any healthcare provider who would want to be paid the lowest, being aware of the pays of the other providers will result in them in charging more and hence there will be a rise in the prices. If that were not false, then revealing the price of any food item at Wendy’s, KFC, Burger King, and McDonald’s should boost the prices and not lower them. The similar logic would have us questioning why the Target or the Walmart shields the prices of products from us, too, let they begin to raise the prices in a competition to get to the top.
Could the logic be any more absurd? At the briefing of Donald Trump on the executive order, Larry Van Horn who is an economist explained that revealing the prices i.e. price transparency should lead to a decrease in the price dramatically.
We have an experience of 250 years in the United States along with a system of free markets which provides us with some of the refined quality goods & services which are low-cost as well. The system is dependent on the capability of the purchasers to know the prices which are being charged by the sellers, before any making of a purchase.
For several years, the healthcare industry of America has flourished because ‘the bizarre 3-party payment system’. In our peculiar system, 2 parties which are insurance firms & hospitals apparently negotiate a price which the 3rd party which is the patients) are responsible for, yet we are not aware of the negotiation or the actual price until after the fact. This results in a broken system.