Hospital Price Transparency Tool compares prices for more than 5,000 procedures among 82 Colorado hospitals, saving Coloradans money on health care
DENVER - Today Governor Polis, Lt. Governor Primavera, and the Department of Health Care Policy & Financing (HCPF) announced the Hospital Price Transparency Tool, which allows employers, municipalities, consumers, advocates, policymakers, other health care payers and state regulators to compare the costs of more than 5,000 procedures at 82 Colorado hospitals. This write-up explains how the tool provides consumers and employers with transparent information to help inform their choice of carriers and plans. This tool compares multiple hospitals' gross charges, cash discounted prices, estimated Medicare costs, and commercially negotiated prices, building on Colorado’s nation-leading hospital affordability work intended to save people money on healthcare.
“Saving Coloradans money on healthcare will keep more hard-earned money in people’s pockets, improve our quality of life, and make our state more affordable for everyone. This transparency tool is another way Coloradans, employers, and leaders can ensure Colorado’s competitive healthcare market provides high-quality care at low costs. This builds on our work to make healthcare, including prescription drugs, insurance premiums, and more, cheaper for everyone,” said Governor Polis.
“Every Coloradan deserves quality, affordable healthcare and this tool is another resource to help lower costs and increase transparency. This innovative tool builds on the work our state has done to cut costs and ensure that everyone in our state can access the treatment they need,” said Lt. Governor and Director of the Office of Saving People Money on Health Care Dianne Primavera.
“Hospital costs make up the largest part of health care premiums and health care benefit costs. By lowering hospital prices, you lower premiums and benefit costs,” said HCPF Executive Director Kim Bimestefer. “Every community can leverage this tool to see if its local hospital is charging its residents and businesses higher prices than other Colorado hospitals for the same services. Knowledge is power, and this tool empowers community leaders to have productive affordability conversations with their hospital’s executive team intended to lower their prices to the benefit of all those in that community.”
“Colorado’s Hospital Price Comparison Tool transforms machine-friendly files to consumer-friendly data. It is self-explanatory, easy-to-use, and conveniently accessible for all. This tool not only benefits Coloradans by making hospital price comparison possible but also sets an outstanding example for other states interested in bringing affordable healthcare to their residents,” said Professor Ge Bai, PhD, CPA, Johns Hopkins Carey Business School and Johns Hopkins Bloomberg School of Public Health.
On Jan. 1, 2021, the Federal Price Transparency Rule went into effect, requiring hospitals to publicly post five standard charges: gross charges, discounted cash prices, de-identified minimum and maximum rates, and payer-specific negotiated rates. By leveraging this information, this Colorado-specific price comparison tool provides easy-to-access comparison information on the state’s hospital prices.
“This tool is a big step forward in hospital price transparency. It organizes the pricing data that is spread across hundreds of hospital websites into a single website, making comparisons quick and easy. Peak Health Alliance appreciates the hospitals that are reporting their data. Their cooperation with HCPF will allow the people of Colorado to research where they can access high-quality, cost-effective care,” said Richard Cimino, MBA, Executive Director of Peak Health Alliance.
Colorado is at the forefront of hospital transparency, accountability and analytics. This new Hospital Price Transparency Tool along with HCPF’s previously released reports and tools are intended to help lower health care costs that save Coloradans and our employers money on health care.
Colorado is leading the nation in lowering healthcare costs. The landmark Colorado Option and Reinsurance efforts continue to save Coloradans millions each year on healthcare. Through Colorado’s Prescription Drug Affordability Board, its rebate pass-through, spread pricing prohibitions, and innovative prescriber tools, the state is becoming a national model to help lower the cost of prescription drugs.
Visit HCPF’s Hospital Reports Hub to view this year’s pricing transparency reports, along with previous HCPF hospital reports and other resources.
###