Albuquerque Journal

Many hospitals don’t meet price transparen­cy rules

Fines too low to motivate providers

- BY JESSIE HELLMANN

WASHINGTON — A federal rule requiring hospitals to post prices online took effect a year and a half ago, but spotty data and noncomplia­nce have meant the rule has yet to live up to its promise of lowering health care costs, employers and researcher­s say.

Many hospitals still aren’t fully following the rule, and the federal government — despite threatenin­g larger monetary penalties for noncomplia­nce — still hasn’t issued any fines.

In all, thousands of hospitals are estimated not to be fully complying with a part of the rule requiring they post troves of data online that include informatio­n on cash prices for services, rates negotiated with payers, and other informatio­n that can be helpful to researcher­s and people and businesses paying for health care.

The data, which some had hoped would help drive down health care costs, has often been incomplete and difficult to decipher and compare to data from other hospitals.

Among the common deficienci­es are blank or missing data fields, not listing rates for all insurers or cash rates paid by the uninsured, providing inaccurate prices or listing payer names and not the associated plan names.

“All of our members and many employers have been trying to make use of this and were looking forward to having this informatio­n,” said Bill Kramer, executive director for health policy at the Purchaser Business Group on Health, which advocates for private and public employers that buy health care.

“But, at this point, there are very, very few examples of success,” he said.

The so-called “price transparen­cy” rule, which took effect in January 2021 under the Trump administra­tion, was intended to help consumers shop for care, increase competitio­n and drive down prices, especially in heavily consolidat­ed hospital markets.

While most hospitals have been willing to follow parts of the rule — namely, a requiremen­t that they post user-friendly lists or tools to help patients shop for services — they have been less compliant with a requiremen­t that they post “machine readable” files of standard charges — data that experts say would be far more useful in driving down costs.

It’s not clear how many of the 6,000 hospitals across the U.S. are following the rules. The Centers for Medicare and Medicaid Services, which enforces the rule, has been auditing a sample of hospitals since January 2021 and told CQ Roll Call that, as of this month, it has issued about 352 warning notices for noncomplia­nce.

CMS has also issued 157 corrective action plan requests to hospitals that previously received warning notices, but have not yet corrected deficienci­es. Nearly 170 hospitals have received case closure notices after addressing previous citations. CMS has yet to issue any fines. “To date, each hospital that has come under compliance review has resolved its deficienci­es, or is in the process of doing so,” said a CMS spokespers­on in a statement. “Therefore, it has not been necessary for CMS to issue any penalties.”

A series of studies of sampled hospitals has demonstrat­ed the low compliance. For example, a March study of 89 children’s hospitals showed 51% omitted payer negotiated rates from their machine readable files, and 40% did not include cash rates, which are typically paid by the uninsured. About 98% of the sampled children’s hospitals were compliant with the “shoppable” services requiremen­t, which critics say provides little value to consumers because it may not represent what patients end up paying.

“It’s against their financial interest to disclose the data. That’s why there’s such low compliance,” said Sophia Tripoli, director of Health Care Innovation­s at Families USA, a consumer advocacy group that is calling for increased fines and enforcemen­t.

Hospitals with more than 30 beds can be penalized a maximum of $2 million annually for noncomplia­nce, which isn’t enough of a fine to motivate providers “flush with cash,” she said.

Hospital leaders have expressed concerns that releasing data on what various payers are paying for services could give insurers more leverage in negotiatio­ns.

Turquoise Health, which was formed at the end of 2020 to analyze data, and help providers and payers become compliant with the rules, has found that about 4,500 of the nation’s 6,093 hospitals have posted data files.

 ?? SOURCE:DREAMSTIME ?? Many hospitals still are not following a federal rule requiring hosptials to post prices online
SOURCE:DREAMSTIME Many hospitals still are not following a federal rule requiring hosptials to post prices online

Newspapers in English

Newspapers from United States