Price Transparency Ruling

On June 23, 2020, Judge Carl Nichols of the U.S. District Court for the District of Columbia issued a ruling in The American Hospital Association, et al., v. Azar case. The case, filed by a coalition of hospital groups, challenged the federal rule stemming from Trump's executive order issued in 2019 that requires hospitals to disclose privately negotiated prices with insurers. The hospitals claimed that the rule exceeded Health and Human Service's statutory authority, violated the First Amendment, and was arbitrary and capricious under the Administrative Procedure Act.

Judge Nichols held that the rule was reasonably related to the government's interest in lowering healthcare costs and giving consumers more information to help them make decisions regarding their treatment, and as such, struck down the hospital groups' challenge to the law. Representatives for the American Hospital Association, one of the Plaintiffs, stated they will appeal the ruling and seek an expedited review.

The rule is currently scheduled to go into effect January 1, 2021. A full copy of the ruling is attached, and can be found here: https://www.aha.org/system/files/media/file/2020/06/court-decision-judge-nichols-negotiated-chrges-6-23-2020.pdf

Categories: Healthcare

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