By Tami Luhby, CNN Updated 9:59 PM ET, Tue June
23,
(CNN)A
coalition of hospital groups lost their attempt to block the Trump
administration from requiring hospitals to disclose the prices they privately
negotiate with insurers.
Judge
Carl Nichols of the US District Court for the District of Columbia on Tuesday
rejected the industry groups' contention that
the Trump administration exceeded its authority and violated the First
Amendment when it approved a rule last November that would force hospitals to make these rates
public by 2021.
The
historic rule stems from an executive order President
Donald Trump issued last summer. The administration argues that such price
transparency will help reduce health care costs.
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.
Trump
also celebrated the decision in a tweet later Tuesday, saying in part:
"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."
The
American Hospital Association, one of the plaintiffs, vowed to appeal the
ruling and seek expedited review.
"The
proposal does nothing to help patients understand their out-of-pocket costs. It
also imposes significant burdens on hospitals at a time when resources are
stretched thin and need to be devoted to patient care," said Melinda
Hatton, the group's general counsel. "Hospitals and health systems have
consistently supported efforts to provide patients with information about the
costs of their medical care. This is not the right way to achieve this
important goal."
The
plaintiffs -- who include Association of American Medical Colleges, Federation
of American Hospitals, National Association of Children's Hospitals and three
hospitals -- argued that disclosing the rates could confuse patients because
those prices are different than their out-of-pocket obligations. How much
consumers actually pay for hospital services depends on their insurance plans,
including their deductibles, and how much medical care they've had during the
year.
The
rule also requires hospitals to reveal the amounts they are willing to accept
in cash for an item or service. They must provide all this information in an
online, searchable way for 300 common services, such as X-rays, outpatient
visits and lab tests. Hospitals that don't comply face a civil penalty of up to
$300 a day.
The
administration also proposed a separate rule that would require insurers to
provide consumers with estimates of their out-of-pocket costs for all health
care services through an online tool. Carriers would have to disclose their
negotiated rates for in-network providers, as well as the allowed amounts paid
for out-of-network providers.
Some
experts, however, say that the rules will not help many consumers because
people don't typically shop for medical services.
The
district court decision comes a week after the Trump administration lost
another legal round in its attempt to require drug companies to disclose prices in their
television ads. A federal appeals court ruled that the
administration lacked the authority to do so.
This
story has been updated with reaction from one of the plaintiffs and
President Donald Trump.
https://www.cnn.com/2020/06/23/politics/trump-hospitals-insurers-rates-price-transparency/index.html
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