In October 2020, the Departments of Labor, Treasury, and Health and Human Services released the final rules on the “transparency in coverage” requirements. These rules, among other things, require group health plans to disclose detailed pricing information to the public and cost-sharing estimates to participants before they receive care. While the participant disclosures are not required until 2023, the public disclosure requirements go into effect for plans beginning on or after January 1, 2022.
Beginning on July 1, healthcare plans will be required by law to provide more transparent information about the cost of healthcare procedures. The Transparency in Coverage Rule is intended to help U.S. consumers make better informed choices about the cost of healthcare for hundreds of procedures as well as the price of drugs administered by pharmacies.
Employers sponsoring group health plans subject to the Transparency Rule will be subject to new disclosure requirements. For the upcoming 2022 plan year, employers must address how their group health plans will provide the required disclosures to the public. For the 2023 and 2024 plan year, employers will again need to address how their group health plans will provide the required disclosures to plan participants.
Parrott Benefit Group has created a detailed Compliance Brief, as well as an in-depth Webinar, to help you better understand this Transparency in Coverage Rule, and what steps you can take to prepare for the new requirements:
