FTC Issues Letters to Hospitals Against Deceptive Pricing
On October 5, 2026, Federal Trade Commission ("FTC") Chairman Andrew Ferguson sent letters to 24 hospitals about their price-transparency obligations under Section 5 of the FTC Act.
The letters follow the FTC's launch of its Healthcare Task Force in March 2026. They also come as another agency, the Centers for Medicare & Medicaid Services ("CMS"), steps up its own enforcement.
The CMS Hospital Price Transparency requirements, established under Section 2718(e) of the Public Health Service Act, require most hospitals to disclose their standard charges for healthcare items and services in a machine-readable file identifying gross charges, discounted cash prices, payer-specific negotiated rates, and de-identified minimum and maximum negotiated rates, as well as a consumer-friendly display of pricing for at least 300 shoppable services. CMS expanded the rule effective January 1, 2026, to require allowed-amount data and an attestation of accuracy. Various published reports released in 2026 indicate CMS has since warned more than 500 hospitals about noncompliance. CMS also enforces the No Surprises Act, including its good-faith estimate requirements.
Key takeaways include:
- CMS compliance is not a safe harbor. The FTC calls the CMS requirements a "regulatory floor." Meeting them does not satisfy Section 5.
- Incomplete pricing may be deceptive. Leaving out charges such as physician or facility fees may mislead patients, who may reasonably believe they have been given the total cost of care.
- Late or inaccurate pricing may be unfair. This concern arises when the provider could reasonably have given the information in advance. The FTC claims such practices undermine competition by keeping patients from comparing providers.
- Disclosures must be clear and conspicuous. Fine print or ambiguous disclaimers may not cure a misleading impression.
- Scheduled care and vulnerable patients are priorities. The FTC highlights non-emergency scheduled services, as well as services provided to rural Americans, seniors, and veterans.
The FTC urges providers to review their pricing practices comprehensively and correct problems swiftly. The FTC's warning signals continued scrutiny of hospital pricing practices and a commitment to monitor the market and "take enforcement action as warranted."
