Lawsuit filed regarding CMS’s pricing transparency rules

On Dec. 4, 2019, a lawsuit was filed against the Centers for Medicare & Medicaid Services (CMS) over the contract disclosure rule that goes into effect on Jan. 1, 2021.

The American Hospital Association (AHA), Association of American Medical Colleges (AAMC), Children’s Hospital Association (CHA) and Federation of American Hospitals (FHA) are challenging the provision requiring certain contracted rates to be disclosed to consumers, citing the excessive cost hospitals will undertake to be compliant.

At this time, the lawsuit does not defer the effective date.

Hospitals and providers should carefully watch this development, but should also proactively plan for compliance. We highly recommend you do not wait and see, but instead ensure you are making your best attempts to be compliant with the rules on their effective date.

Contact us to discuss your situation or any questions you have on complying with the new pricing transparency rules today.

Learn more about the suit:

• American Hospital Association: Hospital Groups File Lawsuit Over Illegal Rule Mandating Public Disclosure of Individually Negotiated Rates
• The Hill: Hospital groups file lawsuit to stop Trump price transparency rule
• Modern Healthcare: CMS may not have power to make hospitals disclose negotiated prices