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HHS heads to court with Chamber of Commerce over insurer price transparency

by John R. Fischer, Senior Reporter | August 20, 2021
Business Affairs Insurance

Following the chamber’s lead, the Pharmaceutical Care Management Association also filed a suit against the HHS, the IRS and the Labor Department over the rule, saying that it "offers consumers no actionable information because net prescription drug prices are not charged to consumers and never appear on a bill," and "will likely only confuse them,” reported Reuters.

Passed under the Trump administration in 2019, the price transparency requirement has been met with pushback from insurers, healthcare providers and other opponents, who say the new rule warrants government interference and could potentially undermine competition in insurance negotiations.

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Despite going into effect at the beginning of 2020 for hospitals, a survey released in July by PatientRightsAdvocate.org found that just over 5% of healthcare providers were complying. This conflicts with American consumer attitudes, with 85% saying in the survey that transparency of healthcare prices, quality metrics and outcomes should be a priority for lawmakers.

CMS has already issued a warning and started auditing hospital websites and reviewing complaints. It also can fine those in violation up to $300 per day.

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