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Increasing Transparency in the Pricing of Health Care Services and Pharmaceuticals 1 (June 2008)

handle is hein.congrec/cbo9339 and id is 1 raw text is: A series ofissue summaries from the Congressional Budget Office JUNE 5, 2008 Increasing Transparency in the Pricing of Health Care Services and Pharmaceuticals What Is Price Transparency? The price of a particular health care service is not uni- form among providers or payers. Although a provider may have a list price for a particular service, the actual transaction price for that service varies widely, depending on the type of payer-individuals, governments, or insur- ance companies. Moreover, competing providers may col- lect different payments from different payers or types of payers. Therefore, in health care markets, list prices are often higher than what the provider accepts as payment in full from a particular payer. With so many different prices applicable to a particular health care service, it is perhaps not surprising that a consistent definition of the term price transparency is elusive. Publication of list prices has at times been referred to as transparency, but the term could also be used to describe insurers' efforts to make available to their

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