In 2020, the U.S. Federal Government established health care transparency rules. To find out what that means for you as a health care customer please check out our blog on the rules and how they affect you because on this post we’re discussing Transparency fines for employers.
The rules are mainly to promote visibility and accessibility of healthcare information. For the general public, the rules were also designed to hold employers accountable for providing said information to their employees. Part of this initiative includes fines for those employers who fail to comply with the transparency requirements.
The fines are meant to serve as a deterrent against non-compliance. It is also to help strongly encourage employers to prioritize transparency. The implementation of these transparency rules and thus their fines went into effect in January 2021. Unfortunately the majority of hospitals and business are not in compliance. Many business owners are unaware of the fines. Depending on the nature and severity of a given violation the impact could be devastating for small businesses.
An example number currently making the rounds is $100 per employee per day for those that do not provide the required price transparency. If a provider directory is found to be inaccurate it could result in fines of up to $25,000 per affected individual. There are also fines specifically surrounding drug pricing transparency which are equally stringent. Employers that do not disclose the rates for prescription drugs could be fined as much as $300 per day per plan enrollee.
Transparency rules work towards the broader goal of improving healthcare outcomes and reducing healthcare costs for all. By sharing this data with employees, they can consider cost-effective options while still getting high-quality care. The prioritizing of compliance can lead to better employee trust. It can majorly contribute to a healthier and more cost-effective healthcare system.