Health—at What Price?

Imagine if the airline industry did not post prices for flights in advance. What if instead of posting fares on travel sites, airlines argued they could only bill you after the flight, because they didn't know what the fuel price will be that day; whether or not you would consume a beverage; if the flight might be diverted or delayed; whether that pilot would have to work harder and bill more in their coding of the flight after they land? And yet, this is exactly what happens in healthcare. Despite the cost crisis in healthcare, we still don't talk about prices—prices for procedures, for visits, for services. But in January 2021, thanks to new regulation, that will change. In this episode, a16z General Partner Julie Yoo talks with Dr. Marty Makary, surgical oncologist at Johns Hopkins University School of Medicine, health policy expert—and a longtime advocate for transparent pricing in the healthcare system. Makary argues that making prices obvious will change all kinds of behaviors in the healthcare system, not just allowing consumers to "shop" for the best value of different healthcare services, but will drive higher quality standards; minimize things like surprise billing and incentives towards volume; increase the rigor of analyzing the medical appropriateness of certain clinical decisions (do we need this elective procedure or not? is it good longterm value?); affect even how we choose our doctors; and much more.