Hospitals Sued to Keep Prices Secret. They Lost.

A federal judge has upheld a Trump administration policy that requires hospitals and health insurers to publish their negotiated prices for health services, numbers that are typically kept secret.

The policy is part of a major push by the administration to improve transparency in health care. Insurers and health providers usually negotiate deals behind closed doors, and patients rarely know the cost of services until after the fact.

Administration officials said more price transparency would lead to lower and more predictable prices in an industry that has huge ranges in what insurers pay for services. A simple blood test, for example, can cost $11 or $1,000. Coronavirus tests show a similar variation, with prices from $27 to $2,315.

But in a lawsuit, the American Hospital Association said the administration did not have the legal authority to require the publication of negotiated prices, arguing that the publication of the prices could have perverse effects. On Tuesday, the judge, Carl Nichols, disagreed.