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

Perspective
December’s holiday rush is in full swing on Capitol Hill as Congress returned to Washington this week facing a long list of to-dos and a short time to do them…
Headline
The Coalition to Strengthen America's Healthcare Dec. 4 launched a new national, seven-figure digital, cable and broadcast advertising campaign that highlights…
Headline
The AHA and 22 other organizations Nov. 22 urged Congress to pass an end-of-year health care package that includes action on alternative payment models and a…
Headline
New analysis conducted by Dobson | DaVanzo released Nov. 21 by the Coalition to Strengthen America's Healthcare found that integration can provide more…
Headline
"The AHA and America’s hospitals and health systems congratulate President-elect Trump and look forward to working with him and his incoming Administration to…
Perspective
After a long season of campaigning, polls, ads, promises, debates and analysis from pundits, voters are once again on the cusp of electing a president and…