Last week, the Centers for Medicare & Medicaid Services (CMS) alerted health plans and health insurance issuers to the impending deadline for electronically submitting verifications of conformity with the proscription against so-called gag clauses. The deadline for this compliance, as stated by CMS, is not too far away, on December 31, 2023, and thereafter annually on December 31 of every year. All this according to an article by Manatt, Phelps & Phillips, LLP.
A gag clause prohibitions essentially prevent services providers from gagging or inhibiting consumers in expressing their perspectives or concerns, particularly about prices. These clauses have an expansive impact on both the healthcare providers and consumers alike.
The imminent compliance deadline has a cascade of implications for health plans and issuers. It mandates an adjustment in how they handle information regarding pricing, negotiate contracts, and engage in dialogue and disclosure with consumers.
CMS has been driving entities covered under this mandate to become more geared up for the deadline. The deadline will compel immediate action from both health plans and issuers, to not only guard against potential legal consequences, but also to uphold the rights and interests of the consumers they serve.
Preparedness for the gag clause prohibition compliance deadline is, therefore, of paramount importance. As the saying goes, knowledge is power; being informed about these coming requirements can significantly counter any potential setbacks or legal repercussions. This transition towards transparency is a promising step in consumer protection within the healthcare industry.