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Health insurance is supposed to help us manage the cost of medical care, but for many people, it feels like a battle just to get claims approved. Billionaire entrepreneur Mark Cuban says there’s a reason for this – and he believes more transparency could be the solution to high health care costs in the U.S.
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According to Cuban, big insurance companies make it unnecessarily difficult for doctors and hospitals to get paid by adding layers of paperwork and approvals, turning every claim into a drawn-out process. This frustrates health care providers and patients who just want their bills covered without hassle.
No population wide insurance will work in a market where there is no transparency.
The games the big insurers play have nothing to do with insurance or wellness. They make approving and paying every claim a battle for providers and sponsors.
There is reason providers charge… https://t.co/biRgvuC5W1
— Mark Cuban (@mcuban) September 16, 2024
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Cuban’s remarks came in response to a tweet by Larry Levitt, an expert on health policy, who highlighted a comment made by Sen. JD Vance. Vance had criticized the Affordable Care Act (ACA) for “a one-size-fits-all approach that puts a lot of people into the same insurance pools, into the same risk pools that actually makes it harder for people to make the right choices for their families.”
Levitt explained that this single-risk pool allows the ACA to protect people with preexisting conditions from paying higher premiums. Cuban then broadened the discussion to the overall lack of transparency in health care pricing and how it impacts costs.
JD Vance makes a wonky but important point here, saying we shouldn’t have a health insurance system that puts people “into the same risk pools.” A single risk pool under the ACA enables community rating, meaning people with pre-existing conditions don’t pay higher premiums. https://t.co/5oLuUAmNpG
— Larry Levitt (@larry_levitt) September 16, 2024
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Why Transparency Matters
Although it’s not a novel concept, transparency in health care pricing is still not commonly implemented. Like other goods and services, customers could compare costs if they knew how much an operation or doctor’s visit would cost before receiving the bill.
The entire industry would change if Cuban’s goal of complete transparency came to fruition. Providers would have to justify their often incredibly steep rates if consumers could see exactly what insurers are paying, resulting in increased competition, lower prices, and a much simpler health care system.
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It’s unclear if Cuban’s call for transparency will gain traction, but it’s a conversation worth having. If more people start demanding to see the true cost of their health care, it could push insurers and providers to rethink how they do business. The battle over every claim continues for now, but perhaps a more transparent future is on the horizon.
As Cuban said, “Require every contract to be published and the market becomes efficient, and care costs drop significantly.”
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This article Insurance Companies Turn Every Claim Into A Fight. Here’s How Mark Cuban Thinks Transparency Could Lower Prices In A $1.6T Industry originally appeared on Benzinga.com
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