Hospitals sue to block Trump administration rule forcing them to disclose secret rates

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Hospital groups sued to block a Trump administration rule forcing them to disclose secret rates, for the first time laying out the industry’s legal strategy for defeating the president’s central health-policy initiative.

The lawsuit filed Wednesday says the rule compelling the hospitals to publish their negotiated rates with insurers violates the First Amendment and goes beyond the statutory intent of the Affordable Care Act.

“The burden of compliance with the rule is enormous, and way out of line with any projected benefits associated with the rule,” according to the suit, which was filed by the American Hospital Association and other industry groups in U.S. District Court in Washington.

The groups say the disclosure under the rule would be compelled speech in violation of the First Amendment. They are asking for an expedited decision, saying hospitals could otherwise spend needless time and resources preparing for a rule that may be invalidated by the court.

An expanded version of this story appears on WSJ.com

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