The federal appeals court in Washington, D.C., should overturn a lower court ruling upholding a Department of Health and Human Services final rule requiring hospitals to disclose the rates they agree to accept from insurers, the AHA told the court today, joined by the Association of American Medical Colleges, Children's Hospital Association, Federation of American Hospitals and several member hospitals.

Calling the hospital groups’ legal challenge to the rule a “close call,” the lower court nevertheless upheld the rule as a reasonable statutory interpretation of Section 2718(e) of the 2010 Affordable Care Act by the agency under a legal theory announced in Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc. (1984), which instructs a court to defer to such reasonable agency interpretation.

Responding to a brief from the government in support of the lower court’s ruling, the hospital groups said the rule clearly exceeds HHS’s statutory authority. 

“Even if Chevron applies—it does not—HHS’s new interpretation is impermissible,” they write. “The government does not dispute that HHS’s Rule implausibly calls thousands of different rates the ‘standard charge’ for each item or service, and would vest HHS with a hitherto undiscovered disclosure power. The government does not contest that HHS compels disclosure of rates that depend on care that patients receive, which hospitals cannot calculate in advance. Nor does the government dispute that HHS’s Rule radically surpasses what any State requires, or that HHS mistakenly rested the Rule’s projections of benefits and burdens on those inapposite state regimes. The Rule also transgresses the First Amendment’s restrictions on compelled speech and the [Administrative Procedure Act’s] bar on unreasoned agency action.”

Related News Articles

Headline
President Trump today released his discretionary spending budget blueprint for fiscal year 2026. The “skinny budget” request, which includes top line…
Perspective
Public
The House Energy & Commerce Committee in just over a week is expected to mark up its portion of the budget reconciliation bill to enact key pieces of…
Headline
The House Energy and Commerce Committee held a markup April 29 where it advanced the AHA-supported SUPPORT Act (H.R. 2483). The legislation would reauthorize…
Perspective
Public
Just 16 days from now, more than 1,000 hospital and health system leaders from across the country will arrive in Washington, D.C., for the 2025 AHA Annual…
Headline
The Centers for Medicare & Medicaid Services today released a notice seeking public comment on the collection of information request regarding the State…
Chairperson's File
Public
This is an incredibly dynamic and transformative time for health care. One resource I have found incredibly helpful in speaking with many of you and engaging…