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CA Department of Insurance

Department of Insurance selects University of California to improve information transparency of healthcare pricing and quality for consumers

News: 2014 Press Release

For Release: June 18, 2014
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Department of Insurance selects University of California to improve information transparency of healthcare pricing and quality for consumers

SACRAMENTO, Calif. - The California Department of Insurance announced today an agreement with the University of California, San Francisco to provide meaningful information to consumers about healthcare prices and quality. The health care pricing and quality transparency project is funded by a federal Cycle III Rate Review Grant from the U.S. Department of Health and Human Services that was awarded to the California Department of Insurance as part of an initiative under the Affordable Care Act.

"Consumers today have limited or no access to information about the price and quality of healthcare services before they receive care. Purchasing healthcare is like shopping in a department store with a bag over your head-you have no idea what the medical costs are before you get the bill. Increased access to medical pricing and quality information is vital to help consumers make more informed decisions about their care, because the best quality care is not necessarily the most expensive care," said Insurance Commissioner Dave Jones. "Transparency in medical pricing should improve competition and result in lower medical costs, as patients will vote with their feet if medical provider prices exceed those of competitors."

Under the agreement with the California Department of Insurance, researchers at the Philip R. Lee Institute for Health Policy Studies at UCSF will collect and analyze data to develop price and quality information for a number of common medical procedures and episodes of care. The information will be made available online. In the initial stage of the project, UCSF's analysis will provide average prices for geographic regions within the state using a number of data sources, including private commercial health insurance and public health programs such as Medicare.

"There are increasing calls for transparency about price and quality in California and nationally", said Dr. Adams Dudley, Associate Director for Research at the Philip R. Lee Institute for Health Policy Studies, at UCSF. "We look forward to making more information available to California patients and their families, so they can make more informed decisions about where to get health care."

Pursuant to the agreement with Department of Insurance, UCSF will also convene a collaborative stakeholder process with a diverse range of stakeholders, to obtain ongoing feedback regarding the project, build partnerships with interested parties, and ensure the healthcare pricing and quality project provides useful information to a number of important audiences, including consumers, businesses, health insurers and healthcare providers.

Commissioner Jones continued, "As the first price and quality transparency initiative undertaken by the State of California, we look forward to collaborating with all interested stakeholders and public agencies to make healthcare pricing and quality information available in a sustained way for all Californians."

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Media Notes: California recognizes the value of healthcare price and quality transparency and its role in supporting broader healthcare reform efforts. This is evidenced not only by the Department of Insurance price and quality transparency initiative but also by the recent state legislative hearings regarding healthcare price transparency and the work of the California Health and Human Services Agency on initiatives such as the California State Innovation Model (CalSIM) State Healthcare Innovation Plan.    

The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.

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