Rapper Fat Joe Says No One Is Making Sure Hospitals Post Their Prices

by | Aug 10, 2022 | Health

“Nobody’s enforcing that law.”

Rapper Fat Joe, in a TV ad about hospital price transparency requirements that began running this spring

Rapper Fat Joe takes on hospital industry executives in an advertisement, contending that many hospitals are disobeying a law that requires them to publicly post the prices they charge cash-paying patients and insurance companies for every service they offer.

The ad, paid for by a group called Power to the Patients, states, correctly, that hospitals must list their negotiated prices and asserts that the rule helps patients by making it harder for them to be overcharged. The ad also blames politicians and regulators because the price information is still not necessarily available.

“Nobody’s enforcing that law,” Joe alleges in the foreboding commercial, which began running on television and social media in April and is still airing.

The ad reflects a desire for accountability as policymakers increasingly view price transparency as a tool to bring down health care costs. And because the law requiring the posting of prices went into effect more than a year ago, we decided to take a look: Is anyone enforcing it?

Turns out there is some enforcement, although the process is more complicated and slower-moving than some observers would like.

Some Background on Transparency

Under rules that took effect in January 2021, the nation’s more than 6,000 hospitals must post online the rates they’ve negotiated with every insurer for every service, from appendectomies to X-rays, as well as the prices they charge cash-paying patients.

The requirement, which the hospital industry unsuccessfully went to court to stop, stems from the Affordable Care Act and an executive order from the Trump administration. Failure to post the required price information can result in fines of $300 a day, recently increased by the Biden administration to as much as $5,500 a day for the largest hospitals.

The idea behind the rule is that consumers, including employers who pay a large chunk of the health insurance bills in the U.S., can use the information to shop for less expensive hospital care, which, in turn, might slow spending or reduce prices. At a minimum, the thinking goes, it will help patients know in advance what to expect. In July, even broader rules went into effect for health insurers, which must post almost all the prices they’ve negotiated — not only with hospitals but also with every other kind of medical facility they contract with, as well as doctors.

Hospitals have dragged their feet, and compliance is spotty. Studies have found that many hospitals have posted at least some data but that large shares of the facilities have failed to post everything required.

What About Power to the Patients?

The website of Power to the Patients, which is behind the ad and a broa …

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