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Chargemaster

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224:, Gerard F. Anderson observed, "Without knowing what services they will use in advance, it is impossible for patients to comparison shop." Anderson also noted the esoteric nature of the language on the chargemaster made it difficult for patients and anyone other than hospital administrators to understand. Anderson emphasized the difficulty of patients' ability to interpret the chargemaster in a subsequent 2012 article: "Furthermore, most of the items on the charge master file are written in code so that only the hospital administrators and a few experts in the field can interpret their meanings." 264: 236: 130:, "Charge-master rates, in reality, serve as nothing more than the starting point for negotiations" with the payer. The impact of the chargemaster is such that those with good insurance or better access to means to afford quality healthcare pay the least for that care, whereas conversely uninsured, and others who pay out-of-pocket for healthcare pay the full chargemaster listed price for the same services. 250: 216:
James C. Robinson pointed out prior criticism of the chargemaster, "Much ink has been spilt bemoaning that incomprehensible foundation of hospital cost accounting and prices, the redoubtable chargemaster." Robinson called for greater transparency as well as increased price standardization as steps to
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Hospital price transparency helps Americans know the cost of a hospital item or service before receiving it. Starting January 1, 2021, each hospital operating in the United States will be required to provide clear, accessible pricing information online about the items and services they provide in two
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The procedure of developing, maintaining, and monitoring the chargemaster and its pricing scheme often necessitates multiple hospital employees working under the supervision of a "chargemaster coordinator", a "charge master manager", or others in the health care system's operations or administrative
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examined the overlooked role that chargemasters played in the American health care system's cost crisis, asserting that they routinely listed extremely high prices "devoid of any calculation related to cost", and were generally regarded as "fiction" in the healthcare industry, despite their
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significant role in setting prices for both insured and uninsured patients alike. Then, a couple months later, the Centers for Medicare and Medicaid Services published inpatient prices for hospitals across the country in a publicly available format.
92:. Each item in the chargemaster is assigned a unique identifier code and a set price that are used to generate patient bills. Every hospital system maintains its own chargemaster. Traditionally, hospitals regarded their chargemaster, alongside the 116:
analyzed utilization of the chargemaster and found that a low proportion of hospitals carried out regular reviews of their chargemaster implementation. Costs for patients maintained on the chargemaster differ greatly from hospital to hospital.
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The chargemaster may be alternatively referred to as the "charge master", "hospital chargemaster", or the "charge description master" (CDM). It is a comprehensive listing of items billable to a
108:, compliance officer, and hospital Board. Approximately forty percent of hospitals pay outside companies to help create and then adapt their chargemasters on a yearly basis. According to 65:
with patients and health insurance providers of what amount of money will actually be paid to the hospital. It is described as "the central mechanism of the revenue cycle" of a hospital.
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support areas frequently called a "charge master team". Ultimate responsibility for ensuring accuracy of the chargemaster rests with each hospital's
1042: 153:" (which is unique to the state) requires all hospitals to provide their chargemaster to the state, which then posts them online for the public. 172:
Chargemasters gained national attention in early 2013, when in short succession, there were two important publications made. First, there was a
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provider. It is described as "the central mechanism of the revenue cycle" of a hospital. Chargemasters include thousands of hospital services,
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that is central to their business, and state laws and courts have historically accepted the view that these are proprietary information.
164:, "Of particular importance, other than in Maryland, hospitals are generally free to charge whatever they want in their chargemaster." 204:
that the approach to chargemasters by hospitals would have to be modified to become more transparent, in order to encourage a form of
1057: 1311: 342: 186:"The 'full charges' reflected on hospital Charge Masters are unconscionable", wrote George A. Nation III in a 2005 piece for the 978: 476: 302: 1225: 969:
Nation III, George A. (2005). "Obscene Contracts: The Doctrine of Unconscionability and Hospital Billing of the Uninsured".
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magazine cover story published February 20, 2013, titled "Bitter Pill: Why Medical Bills Are Killing Us", in which reporter
1257: 945: 287: 887: 862: 837: 806: 773: 748: 659: 451: 209: 503:"Healthcare Information Division: Annual Financial Data – General Information About the Hospital Chargemaster Program" 1159:; Herring, Bradley (September 2012). "High US Health-Care Spending and the Importance of Provider Payment Rates". 1270: 625: 282: 719: 371:"The $ 2.7 Trillion Medical Bill – Colonoscopies Explain Why U.S. Leads the World in Health Expenditures" 205: 1275: 500: 112:, as of 2012 the chargemaster file typically included between 20,000 and 50,000 price definitions. The 1085: 946:"Hospital Prices No Longer Secret As New Data Reveals Bewildering System, Staggering Cost Differences" 1241: 1213: 502: 402: 179: 105: 829: 823: 798: 20: 720:"Errata Sheet for The Essentials of Managed Health Care, Sixth Edition, Jones & Bartlett" 651: 645: 191: 138:
Federally all hospitals are now required to post their chargemaster on the hospital website.
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State of California Office of Statewide Health Planning and Development (August 8, 2012).
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America's Health Care Crisis Solved: Money-Saving Solutions, Coverage for Everyone
591: 560:"Those Indecipherable Medical Bills? They're One Reason Health Care Costs So Much" 88:, equipment fees, drugs, supplies, and diagnostic evaluations such as imaging and 1253: 949: 411: 255: 174: 469:
The Comprehensive Review Guide for Health Information: RHIA & RHIT Exam Prep
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to the hospital. The chargemaster typically serves as the starting point for
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Chargemasters: Strategies to Ensure Accurate Reimbursement and Compliance
416: 113: 62: 1289: 997:"The Pricing Of U.S. Hospital Services: Chaos Behind A Veil Of Secrecy" 510: 146: 89: 19:
For the British electric vehicle charging infrastructure company, see
533:"5 Things Hospitals Should Know About Their Chargemaster and ICD-10" 157: 74: 43: 77: 46: 793:
Health Care Management and the Law: Principles and Applications
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provider. In practice, it usually contains highly inflated
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The chargemaster procedure is generally only regulated in
1154: 133: 471:. Jones and Bartlett Publishers, LLC. pp. 49–51. 763: 42:), is a comprehensive listing of items billable to a 231: 743:. Jones & Bartlett Learning. pp. 114–115. 675:Schneider, Carl E. (July 2007). "The Cash Nexus". 1036: 1034: 1303: 1290:Database of hospital chargemasters in California 882:. Jones & Bartlett Publishers. p. 212. 1218:"Bitter Pill: Why Medical Bills Are Killing Us" 857:. South-Western College Pub. pp. 269–271. 789:Hammaker, Donna K.; Sarah J. Tomlinson (2010). 467:Tyson-Howard, Carla; Shirlyn C. Thomas (2009). 407:"Bitter Pill: Why Medical Bills Are Killing Us" 1298:, Centers for Medicare & Medicaid Services 1031: 1107: 1105: 944:Young, Jeffrey; Kirkham, Chris (2013-05-08). 734: 732: 16:Chargeable items billed to a hospital patient 943: 821: 446:. Delmar Cengage Learning. pp. 41–43. 362: 343:"Revealing a Health Care Secret: The Price" 334: 308:Health insurance costs in the United States 1102: 968: 877: 764:Bartlette, Linda A.; Ida F. Lawso (2008). 738: 729: 596:Centers for Medicare and Medicaid services 1131: 1058:American College of Healthcare Executives 1014: 991: 880:Managed Care: What It Is and How It Works 852: 846: 757: 674: 557: 444:Comparative Health Information Management 368: 340: 1111: 1040: 904:"Hospital Price Transparency | CMS" 822:Rooney, J. Patrick; Perrin, Dan (2008). 782: 768:. Nova Science Pub Inc. pp. 11–13. 639: 637: 584: 160:; author Peter Reid Kongstvedt notes in 1161:Forum for Health Economics & Policy 1050:Frontiers of Health Services Management 496: 494: 492: 490: 488: 397: 395: 393: 391: 96:that catalogue the billing items, as a 1304: 916: 815: 717: 530: 1317:Health insurance in the United States 1240: 1212: 979:University of Kentucky College of Law 643: 634: 620:. Opus Communications. pp. 2–4. 615: 609: 460: 441: 401: 369:Rosenthal, Elisabeth (June 2, 2013). 303:Health insurance in the United States 797:. Delmar Cengage Learning. pp.  485: 435: 388: 167: 134:Existing legislation and regulations 1043:"Price Transparency Begins at Home" 558:Rosenthal, Elisabeth (2017-03-29). 288:Explanation of benefits (insurance) 127:America's Health Care Crisis Solved 13: 1322:Health policy in the United States 1206: 210:University of California, Berkeley 124:and Dan Perrin note in their book 14: 1333: 1283: 741:Essentials of Managed Health Care 650:. Ester Republic Press. pp.  341:Rosenberg, Tina (July 31, 2013). 110:Essentials of Managed Health Care 1246:"Coming up with 'A Bitter Pill'" 1112:Anderson, Gerard F. (May 2007). 1066:10.1097/01974520-200701000-00004 262: 248: 234: 57:at several times that of actual 1312:Healthcare in the United States 1148: 985: 962: 937: 910: 896: 871: 739:Kongstvedt, Peter Reid (2012). 711: 668: 647:Mired in the Health Care Morass 531:Herman, Bob (October 3, 2012). 1250:"Stories I'd like to see" blog 551: 524: 283:Dartmouth Atlas of Health Care 68: 1: 1296:Medicare Provider Charge Data 1224:. Time Warner. Archived from 917:Herman, Bob (July 16, 2012). 855:Health Economics & Policy 592:"Hospital Price Transparency" 328: 149:, a regulation known as the " 853:Henderson, James W. (2008). 208:to help improve the system. 198:noted in a 2006 article for 7: 1041:Robinson, James C. (2007). 227: 217:help remedy the situation. 206:consumer-driven health care 10: 1338: 1276:Columbia Journalism Review 878:Kongstvedt, Peter (2009). 683:(4). Project MUSE: 11–12. 162:Essentials of Managed Care 26:In the United States, the 18: 36:charge description master 1133:10.1377/hlthaff.26.3.780 923:Becker's Hospital Review 616:Abbey, Duane C. (2005). 537:Becker's Hospital Review 1016:10.1377/hlthaff.25.1.57 644:Davis, T. Neil (2008). 106:chief financial officer 1173:10.1515/fhep-2012-0007 677:Hastings Center Report 220:In a 2007 article for 151:Payers' Bill of Rights 21:Chargemaster (company) 1216:(February 20, 2013). 689:10.1353/hcr.2007.0061 405:(February 20, 2013). 192:Health care economist 1228:on February 26, 2013 971:Kentucky Law Journal 925:. ASC Communications 766:Health Care Policies 539:. ASC Communications 423:on February 26, 2013 293:Healthcare Blue Book 270:United States portal 188:Kentucky Law Journal 718:Kongstvedt, Peter. 511:State of California 442:Peden, Ann (2011). 1157:Chalkidou, Kalipso 1155:Anderson, Gerard; 828:. Wiley. pp.  564:The New York Times 375:The New York Times 348:The New York Times 298:Health care prices 86:medical procedures 1244:(March 5, 2013). 478:978-0-7637-5661-1 313:J. Patrick Rooney 168:Critical analysis 122:J. Patrick Rooney 1329: 1269: 1267: 1265: 1260:on March 7, 2013 1256:. Archived from 1237: 1235: 1233: 1201: 1200: 1152: 1146: 1145: 1135: 1109: 1100: 1099: 1097: 1096: 1090: 1084:. Archived from 1047: 1038: 1029: 1028: 1018: 995:(January 2006). 989: 983: 982: 966: 960: 959: 957: 956: 941: 935: 934: 932: 930: 914: 908: 907: 900: 894: 893: 875: 869: 868: 850: 844: 843: 819: 813: 812: 796: 786: 780: 779: 761: 755: 754: 736: 727: 726: 724: 715: 709: 708: 672: 666: 665: 641: 632: 631: 613: 607: 606: 604: 602: 588: 582: 581: 579: 578: 555: 549: 548: 546: 544: 528: 522: 521: 519: 517: 498: 483: 482: 464: 458: 457: 439: 433: 432: 430: 428: 419:. Archived from 399: 386: 385: 383: 381: 366: 360: 359: 357: 355: 338: 272: 267: 266: 265: 258: 253: 252: 251: 244: 242:Economics portal 239: 238: 214:health economics 82:health insurance 51:health insurance 30:, also known as 1337: 1336: 1332: 1331: 1330: 1328: 1327: 1326: 1302: 1301: 1286: 1263: 1261: 1254:Thomson Reuters 1231: 1229: 1209: 1207:Further reading 1204: 1153: 1149: 1110: 1103: 1094: 1092: 1088: 1045: 1039: 1032: 990: 986: 967: 963: 954: 952: 950:Huffington Post 942: 938: 928: 926: 915: 911: 902: 901: 897: 890: 876: 872: 865: 851: 847: 840: 820: 816: 809: 787: 783: 776: 762: 758: 751: 737: 730: 722: 716: 712: 673: 669: 662: 642: 635: 628: 614: 610: 600: 598: 590: 589: 585: 576: 574: 556: 552: 542: 540: 529: 525: 515: 513: 499: 486: 479: 465: 461: 454: 440: 436: 426: 424: 400: 389: 379: 377: 367: 363: 353: 351: 339: 335: 331: 268: 263: 261: 256:Medicine portal 254: 249: 247: 240: 233: 230: 170: 136: 80:or a patient's 71: 49:or a patient's 24: 17: 12: 11: 5: 1335: 1325: 1324: 1319: 1314: 1300: 1299: 1293: 1285: 1284:External links 1282: 1281: 1280: 1271:Alternate link 1238: 1208: 1205: 1203: 1202: 1147: 1119:Health Affairs 1101: 1030: 1002:Health Affairs 993:Reinhardt, Uwe 984: 961: 936: 909: 895: 889:978-0763759117 888: 870: 864:978-0324645187 863: 845: 839:978-0470275726 838: 814: 808:978-1428320048 807: 781: 775:978-1604563528 774: 756: 750:978-1449604646 749: 728: 710: 667: 661:978-0974922140 660: 633: 626: 608: 583: 550: 523: 484: 477: 459: 453:978-1111125622 452: 434: 387: 361: 332: 330: 327: 326: 325: 320: 315: 310: 305: 300: 295: 290: 285: 280: 274: 273: 259: 245: 229: 226: 222:Health Affairs 201:Health Affairs 169: 166: 135: 132: 70: 67: 15: 9: 6: 4: 3: 2: 1334: 1323: 1320: 1318: 1315: 1313: 1310: 1309: 1307: 1297: 1294: 1291: 1288: 1287: 1278: 1277: 1272: 1259: 1255: 1251: 1247: 1243: 1242:Brill, Steven 1239: 1227: 1223: 1219: 1215: 1214:Brill, Steven 1211: 1210: 1198: 1194: 1190: 1186: 1182: 1178: 1174: 1170: 1166: 1162: 1158: 1151: 1143: 1139: 1134: 1129: 1125: 1121: 1120: 1115: 1108: 1106: 1091:on 2013-05-21 1087: 1083: 1079: 1075: 1071: 1067: 1063: 1059: 1055: 1051: 1044: 1037: 1035: 1026: 1022: 1017: 1012: 1008: 1004: 1003: 998: 994: 988: 980: 976: 972: 965: 951: 947: 940: 924: 920: 913: 905: 899: 891: 885: 881: 874: 866: 860: 856: 849: 841: 835: 831: 827: 826: 818: 810: 804: 800: 795: 794: 785: 777: 771: 767: 760: 752: 746: 742: 735: 733: 721: 714: 706: 702: 698: 694: 690: 686: 682: 678: 671: 663: 657: 653: 649: 648: 640: 638: 629: 623: 619: 612: 597: 593: 587: 573: 569: 565: 561: 554: 538: 534: 527: 512: 508: 504: 497: 495: 493: 491: 489: 480: 474: 470: 463: 455: 449: 445: 438: 422: 418: 414: 413: 408: 404: 403:Brill, Steven 398: 396: 394: 392: 376: 372: 365: 350: 349: 344: 337: 333: 324: 321: 319: 316: 314: 311: 309: 306: 304: 301: 299: 296: 294: 291: 289: 286: 284: 281: 279: 276: 275: 271: 260: 257: 246: 243: 237: 232: 225: 223: 218: 215: 212:professor of 211: 207: 203: 202: 197: 196:Uwe Reinhardt 193: 189: 184: 181: 177: 176: 165: 163: 159: 154: 152: 148: 143: 139: 131: 129: 128: 123: 118: 115: 111: 107: 101: 99: 95: 94:medical codes 91: 87: 83: 79: 76: 66: 64: 60: 56: 52: 48: 45: 41: 37: 33: 32:charge master 29: 22: 1274: 1262:. 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Index

Chargemaster (company)
hospital
patient
health insurance
prices
costs
negotiations
hospital
patient
health insurance
medical procedures
blood tests
medical codes
trade secret
chief financial officer
Lewin Group
J. Patrick Rooney
America's Health Care Crisis Solved
California
Payers' Bill of Rights
Maryland
Time
Steven Brill
Health care economist
Uwe Reinhardt
Health Affairs
consumer-driven health care
University of California, Berkeley
health economics
icon

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