S.729 - Hospital Transparency Compliance Enforcement Act (119th Congress)
Summary
S.729, the Hospital Transparency Compliance Enforcement Act, aims to amend the Public Health Service Act to enhance hospital price transparency. It mandates that hospitals establish and update a list of standard charges for services, making this information publicly accessible online. The bill also introduces civil monetary penalties for non-compliance and requires the Secretary to publish a list of hospitals that are not in compliance.
Expected Effects
The likely effect of this bill is increased transparency in hospital pricing, potentially leading to greater consumer awareness and informed decision-making regarding healthcare costs. Hospitals will be compelled to adhere to stricter timelines for price disclosure and face financial penalties for failing to do so. The publication of non-compliant hospitals will likely incentivize compliance.
Potential Benefits
- Increased Price Transparency: Consumers gain access to hospital pricing information, enabling them to compare costs and make informed decisions.
- Enhanced Compliance: The threat of civil monetary penalties encourages hospitals to comply with price transparency requirements.
- Public Accountability: Publishing a list of non-compliant hospitals increases public accountability and incentivizes compliance.
- Standardized Information: The bill promotes standardization in how hospitals present pricing information, making it easier for consumers to understand.
- Reduced Healthcare Costs: Increased transparency can drive competition among hospitals, potentially leading to lower healthcare costs for consumers.
Potential Disadvantages
- Administrative Burden: Hospitals, especially smaller ones, may face increased administrative burdens in complying with the new requirements.
- Potential for Gaming the System: Hospitals might find ways to technically comply without truly providing useful or understandable information to consumers.
- Enforcement Challenges: The Secretary may face challenges in effectively enforcing the civil monetary penalties and maintaining an accurate list of non-compliant hospitals.
- Limited Impact on Negotiated Rates: The disclosed prices may not reflect the actual rates negotiated by insurance companies, potentially limiting the bill's impact on overall healthcare costs.
- Potential for Increased Costs: Hospitals may pass on the costs of compliance to consumers through higher prices.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to improve healthcare access and affordability through increased transparency. Congress's power to regulate interstate commerce (Article I, Section 8) provides a basis for federal regulation of hospital pricing. The bill does not appear to infringe on any specific constitutional rights or freedoms.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).