The debate over healthcare transparency has taken an odd turn. Critics argue that requiring disclosure of negotiated rates and middleman compensation interferes with free markets by exposing proprietary information. But their objections don’t track once you understand the complex structure of employer-sponsored health plans and the oft-forgotten rudiments of market accountability.
Transparency is not a regulatory intrusion into private markets. It is a necessary condition for fiduciaries to fulfill their legal obligations—and for markets to function at all.
