FTC cautions 24 hospitals over price transparency gaps

The FTC has warned 24 of the nation’s largest health-service firms that failing to give timely, accurate and complete price information could breach federal consumer-protection law, especially for scheduled non-emergency care. The agency emphasized that the warning targets firms whose disclosures fall short of the standards set by the FTC Act.

On Oct. 5, Chairman Andrew N. Ferguson sent letters urging each recipient to review its disclosures and swiftly fix any gaps that fall short of obligations under the FTC Act. The correspondence asked the organizations to conduct a thorough audit of their pricing information and to correct any identified deficiencies promptly.

“The CMS rules do not provide a safe harbor from liability under the FTC Act,” the letter template states. This language shows the expectation that compliance with CMS requirements alone does not shield providers from FTC enforcement.

The notice stresses that price transparency matters most in hospitals because health care often represents a major financial burden for consumers. Clear cost data helps patients plan for expenses and compare options before receiving treatment.

Letters note that the warning does not constitute an assessment of any specific company’s pricing practices, nor does it claim a violation has occurred; the FTC has not disclosed the hospitals’ names. Recipients are therefore advised to treat the communication as a pre-emptive measure rather than an accusation.

Potential legal consequences

The agency explains that disclosures may be deceptive when they omit physician or facility fees or show only part of the expected care pathway. Such omissions can mislead consumers who rely on the published information to make decisions.

Under Section 5 of the FTC Act, an omission is deceptive if it is likely to mislead a reasonable consumer. The rule focuses on the effect of the information on the average patient rather than on technical compliance alone.

A practice may also be unfair if it causes substantial harm that consumers cannot reasonably avoid and that outweighs any benefit to competition. The FTC evaluates both the magnitude of the injury and the ability of patients to protect themselves.

Incomplete, inaccurate or delayed pricing can stop patients from comparing providers before scheduled services, the FTC said. This limitation reduces the effectiveness of market competition and can lead to higher out-of-pocket costs.

Current disclosure requirements

The CMS rule obliges hospitals to publish a public, machine-readable file of standard charges, covering insurer-negotiated rates and discounted cash prices. This file must be accessible to the public and updated regularly.

Hospitals must also display a consumer-friendly list of at least 300 services that can be scheduled in advance, or all services if fewer than 300, with a price-estimator tool. The list is intended to give patients a quick view of typical costs for common procedures.

Updates taking effect in 2026 require attestations of data accuracy, completeness, and identification of a senior official overseeing the pricing files; enforcement began Apr. 1. The new attestations are meant to hold a specific leader accountable for the information.

Broader regulatory context

Federal agencies are tightening insurer price-transparency rules. On Oct. 5, CMS finalized changes that compel health insurers and employer plans to publish more usable pricing data and to give personalized cost estimates by phone. The revisions expand the scope of data that insurers must make available to enrollees.

The phone-estimate requirement applies to plan years beginning on or after Jan. 1, 2027. This timeline gives insurers a year to adjust their systems and train staff for the new service.

The effort follows a 2025 executive order that directed agencies to strengthen disclosure mandates, insisting on actual prices rather than estimates and on data that can be compared across hospitals and insurers. The order sought to create a uniform standard for price visibility.