Rivas Goldstein, LLP Call : 512-481-2916

Hospitals take on HHS over price disclosure rule

The United States Department of Health and Human Services (HHS) issued a rule in November that requires hospitals to disclose the rates they negotiate with insurance providers. The rule requires hospitals begin to provide this information to the public in 2021. In response to the rule, the American Hospital Association, Association of American Medical colleges, Children's Hospital Association and Federation of American Hospitals filed a lawsuit against the HHS, stating the agency did not have the authority to require hospitals to make the disclosure.

Lawmakers state the required disclosure will result in increased information for the public, allowing patients to make better, more informed choices about their care. Hospitals counter, stating the rule results in an unreasonable burden. They also voice concerns about the timing of implementation of the rule, stating the impact of the coronavirus pandemic has already depleted their resources.

How did the government respond to the lawsuit?

When faced with the lawsuit, the HHS filed for summary judgment. The group representing the hospitals did the same. The judge recently ruled in favor of the HHS, stating the rule was not "arbitrary or capricious" and that the government's response to the hospitals' concerns was reasonable.

As a result, the rule was deemed legal.

What comes next?

The group representing the hospitals in this case will appeal the decision. If that fails, the rule will likely go into effect and the government will expect hospitals to disclose these rates beginning next year. As currently written, this would include required online postings of standard charges. A failure to do so can result in a fine of up to $300 per day.

No Comments

Leave a comment
Comment Information
Email Us For A Response

Rivas Goldstein LLP: On Your Side, Protecting Your Future

Our experienced Texas-based health care lawyers are here to help you and your business succeed. Please call 512-481-2916 or contact our law firm online.

Schedule A Consultation With An Attorney

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Austin Office
3345 Bee Cave Rd, Suite 104
Austin, TX 78746

Phone: 512-481-2916
Map & Directions

New York Office
By Appointment Only
405 Lexington Ave 26th Floor
New York, NY 10174

Phone: 646-859-3790
Map & Directions

New Jersey Office
By Appointment Only
1 Gateway Center, Suite 2600
Newark, NJ 07102

Phone: 646-859-3790
Map & Directions

Review Us