The murky world of hospital pricing would be exposed to more sunlight under a bill approved this week by state lawmakers.

The legislation calls for the state-run employee health plan to annually publish details of its spending on hospital care, which is the predominant driver of rising health costs nationwide.

The report is meant to document the prices that individual hospitals charge for various services – basic information that consumers and policymakers need, but which is normally hidden from public view.

The bill – sponsored by Sen. Andrew Gounardes, D-Brooklyn, and Assembly Member Michaelle Solages, D-Valley Stream – was unanimously approved by the Senate on May 30 and passed the Assembly by a vote of 143-2 on Monday.

The legislation was the brainchild of the 32BJ Health Fund, a benefit plan for unionized building service workers which has identified hospital charges as the “leading driver” of rising health costs for its members.

The 32BJ Health Fund has also led the push for a similar reporting on hospital spending by the City of New York.

A 2022 study by the fund, based on its own claims data, found that six of the city’s biggest not-for-profit hospital systems – NewYork-Presbyterian, NYU Langone, Northwell, Mount Sinai, Montefiore and Maimonides – charged significantly more for common procedures than hospitals owned by the city or by major medical centers in Boston.

For example, delivery of a baby by Cesarean section typically cost more than $45,000 at NewYork-Presbyterian, compared to $27,000 at Boston Medical Center and $18,000 at a New York City Health + Hospitals facility.

The Albany legislation would generate a similar analysis of hospital spending by the New York State Health Insurance Plan, or NYSHIP, which covers state and local government employees and retirees and their family members.

With 1.2 million members, NYSHIP reported paying $10.3 billion in claims in 2021, 41 percent of which went toward hospital care.

If the bill is signed by Governor Hochul, the first report on NYSHIP’s hospital spending would be due from the Department of Civil Service on Jan. 1, 2024.

New York’s overall hospital spending is high and rising fast. As of 2020, the state’s per capita hospital costs were 43 percent higher than the national average, up from 22 percent five years earlier.

 

About the Author

Bill Hammond

As the Empire Center’s senior fellow for health policy, Bill Hammond tracks fast-moving developments in New York’s massive health care industry, with a focus on how decisions made in Albany and Washington affect the well-being of patients, providers, taxpayers and the state’s economy.

Read more by Bill Hammond

You may also like

The Attorney General’s MFCU SNAFU

Attorney General Letitia James' latest fight with the Trump administration focuses on New York's Medicaid Fraud Control Unit, a federally funded agency housed in James' office. On T Read More

Healthcare Revelations in the Enacted Budget Financial Plan

The state financial plan published on June 10 disclosed key information about healthcare revenue and spending that lawmakers had not made public when approving the annual budget two weeks before. Read More

Federal Suit Traces Medicaid Fraud to the Top of NYS Government

The Trump administration's latest salvo against Medicaid fraud takes aim at a different kind of target – two high-ranking New York officials along with a major state contractor. A Read More

Healthcare Highlights in the New State Budget

Governor Hochul's focus on affordability seems to have skipped over the healthcare portions of the new state budget. The deal finalized May 27 Read More

Lawmakers Consider Hiking Fees for Filling Prescriptions

UPDATE: The proposal discussed below passed the Assembly Friday evening by an unofficial vote of 133-0. Having previously been approved by the Senate, the bill will head to Governor Hochul's desk for her signature or ve Read More

Budget Deal Reportedly Earmarks $100M for 1199 and Extends MCO Tax

As Governor Hochul and legislative leaders rush to finalize the overdue state budget, outlines of some healthcare-related deals have begun to emerge from the closed-door negotiations. Read More

Four Problems with a Statewide Pied-à-Terre Tax

Soon after Governor Hochul floated the idea of a "pied-à-terre" tax in New York City, Albany Sen. Patricia Fahy  proposed to expand the concept to the rest of the state. As with H Read More

Albany Should Listen to Jamie Dimon

In his annual message to shareholders, JP Morgan Chase's chief executive, Jamie Dimon, offered a timely and pointed warning for New York policymakers. It's worth , with emphasis add Read More