power of price

When Uwe Reinhardt tries to explains the Gordian Knot of hospital pricing to his health care economics students at Princeton University, he has a go-to metaphor:

“It's almost like blindfolding people, shoving them into Macy's and saying, ‘buy — efficiently — for a shirt.’ Well you come out with a pair of shorts,” says Reinhardt.

In our Power of Price series, we’ve been exploring how the secrecy shrouding health care pricing can raise costs — the cost of the care itself and the cost to employees who get their insurance through work.

There’s a movement to make those prices more transparent. More than a dozen other states have started something called an “all-payer claims database.”