Insurance companies turn every claim into a battle. Here’s how Mark Cuban thinks transparency could lower prices in a $1.6 billion industry

Health insurance is supposed to help us manage the cost of healthcare, but for many people, it feels like a struggle just to get claims approved. Billionaire entrepreneur Mark Cuban says there’s a reason for that, and he believes more transparency could be the solution to high US health care costs

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According to Cuban, large insurance companies make it unnecessarily difficult for doctors and hospitals to get paid by adding layers of paperwork and approvals, turning each claim into a drawn-out process. This frustrates healthcare providers and patients who just want hassle-free bill coverage.

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Cuban’s comments came in response to a tweet by Larry Levitt, a health policy expert, who pointed out a comment made by Sen. JD Vance. Vance criticized the Affordable Care Act (ACA) for “a one-size-fits-all approach that puts a lot of people in the same insurance pools, in the same risk pools, which 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 pre-existing conditions from paying higher premiums. Cuban then expanded the discussion to the general lack of transparency in health care pricing and how that affects costs.

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Why transparency is important

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Although not a new concept, health care price transparency is not yet routinely implemented. As with other goods and services, customers could compare costs if they knew how much a surgery or doctor’s visit would cost before receiving the bill.

The entire industry would change if the Cuban goal of full transparency were realized. Providers would have to justify their often incredibly high 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 whether the Cuban call for transparency will gain traction, but it’s a conversation worth having. If more people start asking to see the true cost of their health care, it could push insurers and providers to rethink the way they do business. The battle for each 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 the cost of care drops significantly.”

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This article Insurance companies turn every claim into a battle. Here’s how Mark Cuban thinks transparency could lower prices in a $1.6 billion industry originally appeared on Benzinga.com

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