CONNECT WITH US
HealthTech

HealthTech

FTC escalates price transparency crackdown with warning letters to hospitals

Healthcare Dive logo

Published on

Add as a preferred source on Google
FTC escalates price transparency crackdown with warning letters to hospitals

The FTC warned two dozen hospital systems that incomplete or misleading pricing disclosures could violate federal consumer protection laws.

Price transparency has been a priority for health officials in both the first and second Trump administrations, who claim clear, publicly reported pricing among hospitals and insurers will help patients shop for care, spur market competition and eventually drive down medical costs.

At the urging of President Donald Trump, the CMS finalized a rule in late 2019 requiring hospitals to publicly post their standard charges, including negotiated rates with insurers, in two ways: as a machine-readable file and a consumer friendly display of for 300 “shoppable” services. Regulators started enforcing the rule in 2021, and recently tacked on new requirements to make data files more readable, increase accountability and add contextual pricing metrics so patients can better compare care.

However, hospitals have lagged on compliance. More than half of hospitals are still not fully compliant with the CMS’ hospital price transparency rule, transparency advocacy group PatientRightsAdvocate.org said in September.

The second Trump administration has pressured the CMS to more aggressively enforce price transparency. The agency has fined 28 noncompliant hospitals since 2021, with roughly a third of those penalties divvied out since Trump took office at the start of last year.

Now, the FTC is weighing in, reminding hospitals that they must comply with the federal FTC law in addition to the CMS rule.

The agency says hospitals could violate the law by failing to post prices for their services, given not disclosing the information could be considered deceptive and likely to mislead consumers.


Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.