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June 01, 2021

Health Law Connections

Price Transparency 2.0

AHLA thanks the leaders of the Hospitals and Health Systems Practice Group for contributing this feature article.
  • June 01, 2021
  • Herd Midkiff , JTaylor

The Hospital Price Transparency Final Rule (Price Transparency Rule) went into effect on January 1, 2021,1 putting an end to years of industry pushback and legal challenges to the requirement that hospitals publish their payer-specific negotiated rates in a consumer-friendly manner. Price transparency has been discussed at the federal level as far back as 2006, when President George W. Bush urged hospital industry leaders to make their prices for health care more transparent and understandable by consumers.2 That original push gained little traction, but when the Affordable Care Act (ACA) was passed during the Obama administration in 2010, it contained a provision that required “each hospital operating within the United States” to “make public (in accordance with guidelines developed by the Secretary) a list of the hospital’s standard charges for items and services provided by the hospital.”3

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