Health insurers to make hospital tariffs more transparent

The Netherlands Authority for Consumers and Markets (ACM) is of the opinion that health insurers, not hospitals, should make the next move in giving consumers more insight into the tariffs of hospital treatments that fall below the deductible. Health insurers have contracts with various hospitals, and directly charge the insured the hospital tariffs through the deductible. Health insurers are therefore in the best position to advice their customers about current hospital tariffs, and what effects these tariffs have on their deductibles. They can inform their customers via, for example, their websites, special portals for patients, or over the phone.  

What are the benefits of more transparency in the tariffs of treatments?

Patients themselves pay for all costs they incur up to their deductible. When choosing a hospital, it is therefore very important for patients to know what each hospital charges for their services. Chris Fonteijn, Chairman of the Board of ACM, explains: “Your choice of hospital will definitely be felt in your pocket.” Mr. Fonteijn emphasizes that, when choosing a hospital, it is not just about prices: “Information about the quality of treatments is just as important as the tariffs.”

Why would it be better if health insurers, and not hospitals, made the tariffs more transparent?

ACM sees a risk of disrupting the annual negotiations between hospitals and health insurers if hospitals make the tariffs transparent themselves. The idea behind these negotiations is that hospitals in the different areas compete with each other for patients. They should not only compete on quality and service, but also on tariffs. Suppose a hospital makes its tariffs transparent at a strategic moment, when the other hospitals are still negotiating. That would make it much easier for all the other hospitals to keep their tariffs high.

Debate about making tariffs transparent 

A lively debate about publishing hospital tariffs has been taking place, in part because of actions taken by the Dutch Consumers' Association. Last month, Dutch health insurer CZ published on its website the negotiated tariffs that are below the deductible. This October, the Dutch Ministry of Health, Welfare and Sport will organize a meeting with experts about this topic. ACM will provide input for this meeting.