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6 Things to know about the new Price Transparency rule
November 15, 2019
CMS finalizes hospital price transparency rule: 6 things to know
Comprehensive "standard charges" file. The final rule requires hospitals to post their "standard charges" online in a machine-readable file.
Under the definition adopted by CMS, standard charges include the following:
1) Gross charges for procedures & supplies
2) Discounted cash prices
3) Payer-specific negotiated charges
4) De-identified minimum negotiated charges
5) De-identified maximum negotiated charges
Hospitals will be required to disclose the standard charges for all items and services, including supplies, facility fees and professional charges for employed physicians and other practitioners.
Publicize 300 "shoppable services." Hospitals are required to post payer-specific negotiated rates online in a searchable and consumer-friendly manner for 300 services that patients are likely to shop around for. Seventy of the services are stipulated in the rule. Hospitals can choose the other 230 services they post online.
Penalties. Hospitals that fail to publish the negotiated rates online could be fined up to $300 per day.
Negotiated rates. The proposal would require health insurance companies and group health plans that cover employees to disclose on a public website their negotiated rates for in-network providers and allowed amounts paid for out-of-network providers.
Transparency tool. Under the proposal, health insurers would be required to offer a transparency tool to provide members with personalized out-of-pocket cost information for all covered services in advance
Comments. There will be a 60-day public comment period on the proposed rule