As we approach the close of the year, group health plans face an important deadline under a recent piece of legislation. The Consolidated Appropriations Act, 2021 (CAA), which was enacted on December 27, 2020, requires these entities and insurers to annually attest their compliance with the gag clause prohibition set forth by the CAA.
The first of these attestations is due no later than December 31, 2023, and covers the period from the enaction of the CAA until the attestation date. Following this initial attestation, future attestations will be required each subsequent December 31, accounting for the period since the last completed attestation.
Group health plans must demonstrate their adherence to these regulations implementing this new mandate that aims to ensure greater transparency in healthcare cost information, allowing healthcare providers to discuss cost information with patients. Failure to comply could lead to penalties, making it essential that health plans and insurers stay informed and adhere to the stipulations under the CAA.
For further reading and to better understand the scope, requirements, and expectations of the CAA, consider referring to the full legislative document
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The presence of this new piece of legislation highlights the growing legal emphasis on transparency in the healthcare industry. It is crystal clear that this development could have a profound impact on healthcare providers, insurers, and patients for years to come. For law firms that serve clients operating within the healthcare field, staying abreast of these changes in regulation will be paramount in order to provide well-informed advice and guidance.