Starting in 2020, hospitals have to start publicly publishing the negotiated prices of procedures and tests they receive from health insurers, according to a proposed regulation from the Centers for Medicare & Medicaid Services.
Why it matters: Seeing the secretly negotiated amounts that private insurers actually pay for hospital care would shed light on the true cost of care. But some experts worry patients wouldn't know what to do with that information, and the disclosure could lead to lower-priced hospitals raising their rates.
Pfizer will merge its off-patent drugs business with generic maker Mylan to create a giant global seller of lower-priced drugs, the Wall Street Journal first reported.
Why it matters: The world's largest drug maker's deal with Mylan brings together two businesses that have experienced slowed sales since former big sellers lost patent protection.
Health care's administrative back end — services like verifying patients' insurance, putting patients on payment plans and collecting patient debt — is bigger than ever.
The big picture: The U.S.' fractured insurance system leads hospitals and doctors to spend tens of billions of dollars annually on billing software and services — none of which are tied to actual health care.
A very small group of patients with major illnesses is responsible for an outsized share of health care spending, and new data show that prescription drugs are a big part of the reason their bills are so high.
The big picture: Among people who get their coverage from a large employer, just 1.3% of employees were responsible for almost 20% of overall health spending, averaging a whopping $88,000 per year.
