In their quest to preserve the rates they negotiate with insurance companies, hospitals have banded together to stop the Trump administration's price transparency rule.

According to The Hill, the American Hospital Association and other hospital groups have filed a lawsuit in the U.S. District Court in Washington that claims the Centers for Medicare and Medicaid Services rule violates the First Amendment by provoking compelled speech and goes beyond the intended meaning of "standard charges" transparency in the Affordable Care Act.

The suit also asks for an expedited decision, to spare hospitals the burden of having to sift through their complex mess of data should the rule end up being found unconstitutional.

It will be pricey for hospitals to comply, since the estimated costs to prepare the required data in compliance with the rule total between $38.7 to $39.4 million. According to the suit, "[t]he burden of compliance with the rule is enormous, and way out of line with any projected benefits associated with the rule."

In addition to decrying the onerousness of compliance, hospitals say that the end effect of the rule would mean that competitors would jack up their own prices to the point that consumers wouldn't seek care at all.

The suit also challenges the Department of Health and Human Services' authority for enforcement. "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," Rick Pollack, president and CEO of AHA, said in an AHA release. "We stand ready to work with CMS and other stakeholders to advance real solutions for patients."

HHS, naturally, has a different take on the matter. Says HHS spokeswoman Caitlin Oakley, "Hospitals should be ashamed that they aren't willing to provide American patients the cost of a service before they purchase it. President Trump and Secretary Azar are committed to providing patients the information they need to make their own informed health care decisions and will continue to fight for transparency in America's health care system."

Other groups that have signed on to the lawsuit include the Association of American Medical Colleges, the Children's Hospital Association and the Federation of American Hospitals.

Instant Insights /

Hospitals sue to stop Trump on price transparency

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