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Last October, the U.S. Departments of Health and Human Services, Labor and Treasury (the Departments) released the Transparency in Coverage final rule, also referred to as the TiC Final Rule. The goal of the TiC Final Rule is to make healthcare price information more easily accessible to consumers and other stakeholders so they’re empowered to make informed healthcare decisions.
The TiC Final Rule builds on previous actions by the federal government to increase healthcare price transparency. In addition, similar transparency and disclosure provisions were also included in the Consolidated Appropriations Act of 2021 (CAA).
The TiC Final Rule requires group health plans and health insurance carriers to disclose information about in-network provider rates, out-of-network allowed amounts, billed charges for covered items and services, and negotiated rates and historical pricing for covered prescription drugs. Plans also must implement an internet-based self-service tool allowing participants to compare prices for 500 different healthcare items and services.
Originally, these disclosures were required to be posted on a public website in the form of three separate machine-readable files for plan or policy years beginning on or after January 1, 2022. However, recognizing that the two sets of rules (the TiC Final Rule and the CAA rules) could lead to duplicate reporting, the Departments are delaying enforcement of the TiC Final Rule on publishing machine-readable files for prescription drug pricing until further final rules are published.
The Departments are also deferring enforcement of the TiC Final Rule regarding public disclosure of in-network rates and out-of-network allowed amounts and billed charges due to potential overlaps and conflict between the TiC Final Rule and the CAA transparency provisions. This deadline for compliance has been pushed back to plan years beginning on or after July 1, 2022.
Similarly, the Departments will delay enforcement of the TiC Final Rule price comparison tool requirement until plan years beginning on or after January 1, 2023. This is due to a similar requirement by the CAA. And the Departments will also delay the CAA requirement that plans submit information regarding prescription drug expenses to them until December 27, 2022. They plan to issue final regulations addressing the reporting requirements in the meantime.
The CAA requires group health plans to include information on participant ID cards (both physical and electronic) about applicable deductible and out-of-pocket maximums. Cards also must include a phone number and website address where participants can get more information about deductibles and out-of-pocket maximums for plan years beginning on or after January 1, 2022.
This information can be complex depending on the plan design, so the departments intend to provide further guidance in the future. Until then, plan sponsors should use a good faith effort
and reasonable interpretation to comply. Additional information can be made available to participants using a QR code printed on the ID card or hyperlinked on an electronic card.
•Advanced explanation of benefits — Healthcare providers must provide good faith estimates of the cost for services and items when services are scheduled, or estimates are requested. These provisions won’t be enforced until the Departments issue intended final rules.
• Gag clause prohibition — Health plans may not agree to restrict disclosure or not to disclose provider-specific cost and quality of care information or to prevent electronic access to such information. The Departments intend to issue further guidance on this in 2022 and advise plans to use good faith and reasonable efforts to comply in the meantime.
• Continuity of care — Health plans must ensure that participants can continue to receive care or treatment from the same providers and facilities during a course of treatment under the same terms and conditions for 90 days after certain contractual changes alter the status of a provider or facility from in-network to out-of-network. The Departments plan to issue future final rules on this requirement, including a date of enforcement, and expect plans to use good faith and reasonable efforts to comply in the meantime.
• Provider directories — Health plans must provide participants with accurate provider directories and update them periodically to maintain accuracy. The Departments intend to issue final rules regarding this requirement in 2022 and advise plans to use good faith and reasonable efforts to comply in the meantime.
We can help you determine the potential impact of these transparency and disclosure rules on your plan. Give us a call at (803) 791-1111 or send us an email if you’d like to talk about your plan in more detail.
Information is provided by William Amick & Blake Amick and written by Don Sadler,
a non-affiliate of Cetera Advisor Networks LLC.
This post is designed to provide accurate and authoritative information on the subjects covered. It is not, however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought.
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Investment Advisory Representatives offer advisory products and services through Longleaf Advisory Services, LLC, a Registered Investment Advisor.
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Investment Advisory Representatives offer advisory products and services through Longleaf Advisory Services, LLC, a Registered Investment Advisor.