FTC chief demands healthcare firms clarify pricing for patients

The Federal Trade Commission has directed the 24 largest healthcare services companies in the United States to ensure that their pricing information is timely, accurate and complete. Chairman Andrew N. Ferguson issued letters to these major providers to remind them of their existing legal obligations. The agency stated on Monday that the correspondence highlights concerns that companies may be violating the FTC Act if they fail to provide transparent price information to patients.

In a template of the letter, Ferguson clarified that the communication is intended to encourage all healthcare service providers to review their current price-transparency practices. He noted that the letter is not an assessment of any specific recipient’s practices. The FTC emphasised that while the price transparency rules established by the Centers for Medicare & Medicaid Services create a critical baseline, compliance with those rules does not guarantee that a facility has met its obligations under Section 5 of the FTC Act.

The release detailed specific actions that may be considered deceptive. These include failing to disclose the price of a healthcare service, providing incomplete disclosures that omit physician or facility fees, or covering only part of the expected course of care. Inaccurate disclosures were also cited as a concern. Ferguson urged the companies to review their price disclosure practices and swiftly make any required corrections to ensure compliance with federal standards.

Ferguson stated that ensuring pricing is transparent and truthful is one of the enforcement priorities for the current administration. The FTC has prioritised promoting price transparency across multiple markets, including rental housing, ticketing, hotels, grocery delivery services, and auto sales and leasing. This focus on healthcare follows a broader pattern of regulatory action regarding consumer pricing and data usage.

In August, the FTC warned that companies using consumers’ personal data to set prices could be violating the law. An enforcement bulletin noted that retailers who imply a price is static when it actually varies according to the shopper are at risk of misleading consumers. In July, the agency filed a legal complaint against Hims & Hers, accusing the telehealth company of charging customers for prescription treatments before they consulted with a provider. The complaint also alleged that the company enrolled customers in recurring plans and made those subscriptions difficult to cancel.

Earlier in June, the FTC filed a complaint against Genesis Tech, a network of apps. The agency accused the company of hooking consumers with free or low-cost offers and building trust through quizzes and personalised results. The complaint alleged that Genesis Tech hid auto-renewal terms, charged unexpected recurring fees, and made the cancellation process difficult for users.