(Read EBA’s Health Care Transparency December 8, 2020 blog for background.)

Centers for Medicare & Medicaid Services has started issuing warning letters to hospitals not in compliance with the hospital price disclosure rule.

The purpose of the rule, effective Jan 1., is to make hospital pricing information readily available to patients to compare costs and make more informed healthcare decisions. Hospitals are required to post machine-readable file with the negotiated rates for all items and services and display the prices of 300 shoppable services in a consumer-friendly format.

Hospitals have 90 days to respond. If still not in compliance, it may receive a second warning letter or it may be sent a request for a corrective action plan, CMS said.

What happens if a hospital is noncompliant? CMS may request a corrective action plan, or assess a penalty of up to $300 per day, and possibly publicize the penalty on a CMS website.


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