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.”

Perspective
Public
Just 23 days from now, more than 1,000 hospital and health system leaders from across the country will arrive in Washington, D.C., for the 2026 AHA Annual…
Headline
The AHA March 24 commented to the Centers for Medicare & Medicaid Services on upcoming requirements from the Consolidated Appropriations Act of 2026…
Headline
The White House today released its national policy framework on artificial intelligence. The framework includes several recommendations for Congress…
Headline
America’s hospitals and health systems are deeply committed to providing high-quality, accessible and affordable care, AHA President and CEO Rick Pollack March…
Headline
Registration continues for the 2026 AHA Annual Membership meeting, which will be held April 19-21 in Washington, D.C. Policymakers, legislators and thought…
Headline
The AHA Feb. 27 shared recommendations on the Health Data, Technology and Interoperability: ASTP/ONC Deregulatory Actions to Unleash Prosperity proposed rule,…