A district courtjudge ruled that it was within the scope of the HHS to requiredisclosure of negotiated rates, as opposed to requiringonly chargemaster rates. (Photo: Shutterstock)

The Trump administration has notched a win in its efforts toincrease health care transparency. On Tuesday, a federal judgeruled in its favor in a lawsuit filed inDecember by the American Hospital Association attempting to blockthe implementation of a rule requiring hospitals to disclose theirnegotiated prices.

"American patients deserve to be in control of their healthcare," HHS Secretary Alex Azar said in a statement. "Especially when patients areseeking needed care during a public health emergency, it is moreimportant than ever that they have ready access to the actualprices of health care services."

Related: Health industry speaks out against CMS transparencyrule

In his ruling, District Judge Carl Nichols rejected the AHA'sargument that the rule was "arbitrary and capricious." He also gavecareful consideration to the language used in the rule,specifically whether it was within the scope of the HHS to requiredisclosure of negotiated rates or if they should be limited torequiring only chargemaster rates. The former, the AHA argued, wasa violation of their First Amendment rights.

"It is undisputed that chargemaster rates are not the amountspaid on behalf of 90% of hospitals' patients, and thus it is hardto see how they can be considered usual, common or customary,"Nichols wrote.

"Hospitals may be affected by market changes and need to respondto a market where consumers are more empowered, but the possibilitythat the nature of their negotiations with insurers might change istoo attenuated from the compelled disclosure to make the Ruleunlawful," he added.

The AHA plans to appeal the ruling, which may affect the rule'sJanuary 2021 implementation schedule. Referencing the currentCOVID-19 pandemic, Melinda Hutton, general counsel for the AHA,also noted that the rule "imposes significant burdens on hospitalsat a time when resources are stretched thin and need to be devotedto patient care."

Read more: 

• CMS price transparency rule would address just 12%of health care spending
• Price disparities challenge ability of transparencyexecutive order
• CMS may lack authority to compel hospitals to tellnegotiated prices