Sens. Charles Grassley (R-Iowa), Max Baucus (D-Mont.), Ron Wyden (D-Ore.), Mike Enzi (R-Wyo.) and Ben Nelson (D-Neb.) have released a discussion draft of legislation that would provide for greater disclosure of health insurance costs to workers.
Grassley, ranking member of the Senate Finance Committee, said once workers are informed, they might seek changes including improved efficiency, reduced waste and fewer unnecessary procedures, balanced with the natural need to have good coverage.
"As long as people are insulated from the cost and just think someone else is paying for it, then it's easy to overlook expenses," Grassley said. "But once they realize they themselves are paying for it, it should spark a genuine conversation about what to do."
Baucus, chairman of the Senate Finance Committee, said finding ways to lower healthcare costs and increase access to coverage for all Americans will be "an important part" of the committee's healthcare reform agenda next year.
The discussion draft legislation, unveiled Wednesday, would require that an employer disclose the amount of money it pays for an employee's health insurance coverage on the employee's annual Form W-2.
The proposal also calls for employers to disclose the aggregate value of health insurance coverage under multiple plans, if employees are covered by more than one plan, such as major medical, dental plan and vision coverage.
According to Wyden, if Americans could see clearly what healthcare costs, they would understand why wages have been stagnant in recent years.
"This could lead workers to demand that their employers offer more efficient health coverage options," he said.
The proposal follows repeated testimony by experts and the Congressional Budget Office that informing workers about what they pay for healthcare is a good way to begin containing healthcare costs.