The Trump administration can compel hospitals and insurers to publish negotiated costs for health care services that are normally kept secret from patients, a federal judge has ruled.
The ruling from Judge Carl Nichols with the U.S. District Court for the District of Columbia on June 23 is a victory for the administration, which has been pushing for transparency in the U.S. health care system.
The Department of Health and Human Services (HHS) introduced a rule in November 2019 that defined “standard charges,” laid out the publication requirements for hospitals and insurers, and the department’s enforcement plans.
At the time, hospital and insurer organizations and advocacy groups objected to the agency’s proposals, disputing that the Trump administration has the authority to require the disclosures, which they believe are trade secrets. The hospitals also disputed that the policy would benefit consumers and lead to lower costs, countering that compliance would instead be too burdensome and “get in the way” of providing services for patients.
Nichols, a Trump appointee, disagreed on June 23, saying that the hospital trade group was “attacking transparency measures generally” that are intended to “enable consumers to make informed decisions.”
The decision was welcomed by Trump, who said in a statement on social media that the ruling was a “BIG VICTORY for patients.”
Meanwhile, the AHA said it intends to appeal.
“Today’s decision was also premised on the erroneous conclusion that the ‘standard charges’ referenced in current law can be interpreted to include rates negotiated with third-party payers. While the Court ruled that this was a close call, that conclusion clearly does not reflect the experience of hospitals and health care systems. The AHA will appeal this decision and seek expedited review.”
Trump’s executive order on improving transparency on health care prices and quality required the HHS secretary to propose a regulation to publicly post standard charge information “in an easy-to-understand, consumer-friendly, and machine-readable format using consensus-based data standards that will meaningfully inform patients’ decision making and allow patients to compare prices across hospitals.”
It also requires hospitals to regularly update the posted information.
David Mitchell, the founder of advocacy group Patients For Affordable Drugs, said in a statement to The Epoch Times in response to the ruling that he thinks “we have to get rid of our system in which prices are secret and hidden from those who must pay them.”