Chamber Welcomes President’s Executive Order on Health Care Transparency

WASHINGTON, D.C.—The U.S. Chamber of Commerce welcomed President Bush’s executive order today that requires four federal agencies, which administer and support health care insurance programs, to use health information technology standards and to share information on the price and quality of services. Additionally, the order requires these agencies to develop and identify practices that promote high-quality and efficient health care.

“This is an important initiative to address skyrocketing health care costs, a major concern for all employers, while also working to improve the quality of care and empowering consumers,” said Randy Johnson, vice president of Labor, Immigration and Employee Benefits. “For a more consumer-based health care system to be effective, price and quality information must be available to allow consumers to make informed decisions about health care spending.”

However, Johnson said the way performance and quality are measured, as well as the way this information is disseminated, will be key to successfully and fairly implementing this order. Improving quality and incenting practices that promote high-quality health care will introduce a new form of competition into the healthcare arena. Sharing data on performance will provide consumers and employers more information with which to evaluate their health care choices.

“We are encouraged that the executive order directs Health and Human Services to work with all parties involved—including doctors, hospitals, employers, unions, governors, health-plans, and consumers—to resolve the many difficult issues which will undoubtedly arise as this executive order is implemented,” said Johnson.  

In addition to the Health and Human Services Department, which oversees Medicare, the agencies subject to the executive order are: the Defense Department, which oversees health care for the military; the Veterans Affairs Department; and the Federal Employees Health Benefit Program.

The U.S. Chamber is the world’s largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.