Judge Upholds Trump’s Transparency Policy That Would Force Hospitals To Reveal Negotiated Prices
The American Hospital Association argued that the administration did not have the legal authority to force facilities to reveal prices that were negotiated with insurers. The outcome of the negotiations have long been closely guarded by both sides, but the Trump administration sees transparency as a way to force down health care costs.
The New York Times:
Hospitals Sued To Keep Prices Secret. They Lost.
A federal judge has upheld a Trump administration policy that requires hospitals and health insurers to publish their negotiated prices for health services, numbers that are typically kept secret. The policy is part of a major push by the administration to improve transparency in health care. Insurers and health providers usually negotiate deals behind closed doors, and patients rarely know the cost of services until after the fact. (Kliff and Sanger-Katz, 6/23)
The Wall Street Journal:
Trump Administration Price-Transparency Rule Covering Hospitals Upheld
The hospital trade group had argued that the rule compelling the hospitals to publish their negotiated rates with insurers violates the First Amendment and goes beyond the statutory intent of the Affordable Care Act. President Trump welcomed the decision, tweeting Tuesday evening: “BIG VICTORY for patients – Federal court UPHOLDS hospital price transparency. Patients deserve to know the price of care BEFORE they enter the hospital. Because of my action, they will. This may very well be bigger than healthcare itself. Congratulations America!" (Armour, 6/23)
Modern Healthcare:
Hospitals Lose HHS Lawsuit Over Price Transparency
U.S. District Judge Carl Nichols in Washington D.C. wrote that HHS had the right to issue the rule because it considered the concerns of providers and payers, acknowledged conflicting information and explained its decision. "The agency fulfilled its duty to examine the evidence before it and connect it to the final rule," Nichols said. "That the agency's proposed solutions may not have been to plaintiff's (hospital's) satisfaction does not render the rule the rule arbitrary and capricious," he wrote in his opinion. (Brady, 6/23)
The Hill:
Trump Touts Court Ruling Upholding Push To Require Hospitals Disclose Secret Rates
The American Hospital Association (AHA) claimed in a lawsuit filed in December that the federal government didn't have the authority to mandate the disclosure of negotiated prices. The organization alleged that the administration requirement was "unlawful." (Wise, 6/24)
CNN:
Hospitals Lose Bid To Keep Secret The Rates They Negotiate With Insurers
The administration hailed the decision, saying American patients deserve to be in control of their health care. "Especially when patients are seeking needed care during a public health emergency, it is more important than ever that they have ready access to the actual prices of health care services," said Health and Human Services Secretary Alex Azar. (Luhby, 6/23)
In other hospital news —
Kaiser Health News:
Ghost Bill: UVA Siphons Couple’s Tax Refund To Pay 20-Year-Old Medical Debt
The notice from the Virginia tax department puzzled a Charlottesville couple last October. It said their state income tax refund had been reduced because of an outstanding medical debt to the University of Virginia Medical Center. Instead of $220, they got $110. Mystified, they contacted UVA for details about the unpaid bill. The answer astonished them. The medical center had asked the tax department to withhold the money for medical care their son received in 2001 and 2002. (Andrews, 6/24)
