Vasilios J. Kalogredis, left, and Rachel E. Lusk Klebanoff, right, of Lamb McErlane.
On June 23, a federal district court upheld the Centers for Medicare and Medicaid Services’ (CMS) Hospital Price Transparency Final Rule, which will require hospitals to provide patients with easily accessible information about standard changes for items and services offered by the hospital, including privately negotiated payment rates with insurers. See American Hospital Association v. Azar, No. 19-03619 (D.D.C. June 23, 2020). The rule also requires hospitals to provide similar price information for at least 300 “shoppable services” in a consumer-friendly, searchable format on their websites.
The Final Rule, which takes effect on Jan. 1, 2021, one year later than initially proposed, was promulgated as part of the Trump administration’s efforts to provide information to patients on the cost of health care services and lower health care costs. The American Hospital Association (AHA) and other hospital groups challenged the rule on the grounds that CMS exceeds its authority in requiring disclosure of negotiated payment rates.
Definition of ‘Hospital’
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