The court ordered insurers and hospitals to publish prices for medical services

On Tuesday, June 23, the Trump administration won a court ruling that upheld the U.S. president’s plan to demand insurers and hospitals to disclose actual prices for general examinations and procedures to maintain competition and lower costs, writes Time.

Photo: Shutterstock

Head of the Department of Health and Human Services, Alex Hazard, called the decision in a federal court in Washington a “landslide victory” for President Donald Trump's efforts to uncover a confusing healthcare pricing system so patients and their families can make better informed decisions about their treatment.

“This may well be bigger than healthcare itself,” Trump tweeted. “Congratulations to America!”

But the American Hospital Association, which filed a lawsuit to block Trump's administrative rules and became the loser, announced that it would appeal. Industry officials argue that forcing price disclosures agreed between hospitals and insurers amounts to violence against goodwill.

This means that the decision of US District Judge Carl Nichols may not be the last word.

“American patients deserve to be in control of their health,” Azar said in a statement. “Especially as patients seek needed care during a public health emergency, it is more important than ever that they have easy access to actual prices for health care services.”

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Melinda Hatton, general counsel for the hospital association, said the trade group was disappointed with a decision backing what it called “incorrect” policies. Hatton also referred to the coronavirus pandemic, saying that compliance with this rule would lead to new costs at the wrong time.

“It also places a significant burden on hospitals at a time when resources are limited and need to be directed toward patient care,” Hutton said. “The association will appeal this decision and seek an expedited review.”

The disclosure rule will take effect in January, but the exact schedule is unclear.

However, patient advocate Cynthia Fisher said the judge’s decision will help demystify health care costs and is consistent with what most people want to see.

“Americans want hospitals and insurance companies to reveal their hidden prices and believe this will lower prices,” Fisher said.

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As suggested, the Trump administration rule will require hospitals:

• published agreed rates for the 300 most common services that could be planned ahead of time, such as knee replacement, cesarean section, or MRI scan, in a manner convenient for the consumer. Hospitals will need to disclose what they will be willing to accept if the patient pays in cash. Information will be updated every year;
• published all their data in a format that can be read on the Internet by other computer systems. This would allow web developers and consumer groups to offer tools that patients and their families can use.

Insurers also oppose Trump's plan, saying that it could encourage providers to offer better prices to raise prices when they see competitors getting more money.

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