Hospitals sue CMS over price transparency rule Print
Written by Robert King | Fierce Healthcare   
Thursday, 05 December 2019 00:00

Major hospital groups and several individual facilities have filed a lawsuit charging the Trump administration's price transparency rule is "unlawful, several times over." The federal lawsuit announced Wednesday was widely expected after the Centers for Medicare & Medicaid Services (CMS) finalized the rule last month that requires hospitals to post payer-negotiated rates for 300 shoppable services. Hospitals have balked at the cost of implementing the rule, which goes into effect in 2021, and warn the regulation could harm price competition.

"Hospitals and commercial health insurers keep the rates they privately negotiate confidential for good reason: it would undermine competition if they were required to be disclosed publicly and blunt incentives for health insurers to participate in innovative arrangements," according to the lawsuit.