In Expected Move, Hospital Groups Sue Trump Administration Over Price Transparency Rule
Almost immediately after HHS announced the rule, hospitals threatened legal action. On Wednesday, they filed suit. The rule would require the hospitals to reveal previously secret negotiations with insurers about the costs of procedures. The hospitals say the Trump administration is overreaching its authority with the requirement.
The New York Times:
Hospitals Sue Trump To Keep Negotiated Prices Secret
The nation’s hospital groups sued the Trump administration on Wednesday over a new federal rule that would require them to disclose the discounted prices they give insurers for all sorts of procedures. The hospitals, including the American Hospital Association, argued in a lawsuit filed in United States District Court in Washington that the new rule “is unlawful, several times over.” They argued that the administration exceeded its legal authority in issuing the rule last month as part of its efforts to make the health care system much more transparent to patients. (Abelson, 12/4)
The Wall Street Journal:
Hospital Groups Sue To Block Price-Transparency Rule
The lawsuit filed Wednesday says 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. “The burden of compliance with the rule is enormous, and way out of line with any projected benefits associated with the rule,” according to the suit, which was filed by the American Hospital Association and other industry groups in U.S. District Court in Washington. (Armour, 12/4)
The Hill:
Hospital Groups File Lawsuit To Stop Trump Price Transparency Rule
The hospitals argue that the efforts and cost required to follow the rule are overreaching as they would be required to release massive spreadsheets with data on negotiated drugs, supplies, facility and physician care prices. The estimated cost to hospitals to follow the rule is between $38.7 million to $39.4 million. (Coleman, 12/4)
Reuters:
Hospital Groups File Lawsuit To Block Trump's Price Transparency Rule
“The rule ... does not provide the information patients need. Mandating the public disclosure of negotiated charges would create confusion about patients’ out-of-pocket costs, not prevent it,” the plaintiffs said. The rule, seen as a violation of the First Amendment by the hospital groups, also demands confidential information on individually negotiated contract terms with all third-party payers, including private commercial health insurers. (12/4)
CNN:
Hospitals Sue Trump Administration Over Price Disclosure Rule
When he announced the regulation last month, Health and Human Services Secretary Alex Azar said he believes it will survive any legal challenges from hospitals. "Hospitals should be ashamed that they aren't willing to provide American patients the cost of a service before they purchase it," Caitlin Oakley, an HHS spokeswoman, said Wednesday. (Luhby, 12/4)
Axios:
Hospitals Are Going To War Against Trump's Price Transparency Push
Between the lines: The industry has a lot to lose; even non-for-profit systems, as my colleague Bob Herman put it, "swimming in cash." The Trump administration's transparency measure could lead to either more pricing competition or further regulation, if it exposes egregious pricing practices. (Owens, 12/4)
Modern Healthcare:
Hospitals Sue HHS Over Negotiated Price Disclosure Rule
Hospitals sued HHS on Wednesday over a new rule that would force them to disclose the rates they negotiate with insurers. The complaint alleges HHS doesn't have the legal authority to require hospitals to publicly disclose the prices that commercial health insurers and hospitals negotiate with each other. The lawsuit also claims that the mandate violates the First Amendment rights of hospitals and health insurers. (Brady, 12/4)
