Trump’s hospital transparency rule faces new challenge

A recent proposal from the Trump administration to force hospitals to publish their negotiated rates with insurers is facing a new legal challenge, according to Bloomberg Law.

Industry insiders, including hospitals and insurers, “are likely to sue” if the final rule goes through, Bloomberg reported. And the potential legal battle could raise hairy questions about a company’s right to be competitive in the healthcare space.

The proposed rule, which was introduced at the end of June, follows the administration’s efforts to make healthcare prices more transparent to increase competition and lower prices and give patients more knowledge to make more informed decisions about healthcare services, according to CMS Administrator Seema Verma. Hospitals are already required to post their list prices online for services for consumers to view.

Some legal groups also argue the proposal is outside the authority of CMS and the Trump administration. However, the rule is similar to one from HHS to require drugmakers to publish their list prices for medications in television ads to consumers. That rule has so far stood up in court challenges.

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