The AHA joined by three other national organizations representing hospitals and health systems sued the federal government in federal district court, challenging last month's Centers for Medicare & Medicaid Services’ final rule mandating that hospitals disclose their privately negotiated rates with commercial health insurers.

“America’s hospitals and health systems stand with patients and are dedicated to ensuring they have the information needed to make informed health care decisions, including what their expected out-of-pocket costs will be,” said AHA President and CEO Rick Pollack. “Instead of giving patients relevant information about costs, this rule will lead to widespread confusion and even more consolidation in the commercial health insurance industry. We stand ready to work with CMS and other stakeholders to advance real solutions for patients.”

The lawsuit challenges the Department of Health and Human Services’ claim that it has statutory authority to require and enforce a provision that mandates public disclosure of individually negotiated rates between commercial health insurers and hospitals under the authority it has to compel disclosure of “standard charges.” Additionally, the lawsuit makes the argument that the provision violates the First Amendment by compelling the public disclosure of individual rates negotiated between hospitals and insurers in a manner that will confuse patients and unduly burden hospitals.

In addition to the AHA, the three association plaintiffs are the Association of American Medical Colleges, the Children's Hospital Association and the Federation of American Hospitals. The associations are joined in the suit by hospital plaintiffs: Memorial Community Hospital and Health System in Blair, Neb.; Bothwell Regional Health Center in Sedalia, Mo.; and Providence Holy Cross Medical Center in Mission Hills, Calif.

Related News Articles

Headline
A new resource from the American Society for Health Care Engineering and Naval Medicine Readiness and Training Command summarizes recommended ventilation…
News
The AHA today responded to a new RAND report examining policy options to reduce hospital prices paid by private health plans. In a statement shared with the…
Headline
The AHA today urged the Department of Health and Human Services to exercise enforcement discretion with the hospital price transparency rule that took effect…
Headline
CHI Health and Creighton University Medical Center, an academic medical center in Omaha, Neb., partnered to design and build University Clinic, a new primary…
Headline
The International Code Council has named Jonathan Flannery, senior associate director of advocacy for the AHA’s American Society for Health Care Engineering,…
Headline
The Centers for Medicare & Medicaid Services said today that will audit a sample of hospitals in January for compliance with the agency’s hospital price…