Appeals court rejects hospitals’ objections to price transparency rule

A federal appeals court on December 29 rejected the hospital industry’s attempt to block CMS’ price transparency rule, effective January 1, that requires hospitals to disclose standard charges, including payer-specific negotiated rates, for 300 services.

The American Hospital Association (AHA) in June 2020 appealed the price transparency rule, arguing that HHS did not have the statutory authority to enforce the provision. The AHA also claimed that the rule would violate the First Amendment by requiring hospitals to disclose charges that would confuse patients and burden hospitals.

In the appeals court’s decision, Judge David S. Tatel says that the AHA’s arguments “miss the mark,” and that "all of the information required to be published by the final rule can allow patients to make pricing comparisons between hospitals."

The AHA says that it is “disappointed” in the court’s decision and is determining next steps.