On November 12, 2020, the Transparency in Coverage Act (TiC) was adopted, with the goal of bringing more transparency to health care costs. Provisions from the final rule are already in effect. As of January 1, 2023, health plans and health insurers were required to provide a self-service, cost-comparison tool providing participants with out-of-pocket cost information for 500 specific medical services. These entities should prepare for the second tier of this requirement, which mandates cost information for all other medical services is added to the existing tool for plans beginning on or after January 1, 2024. In light of the upcoming requisites the Centers for Medicare & Medicaid Services has released a FAQ providing further clarification.
The TiC final rule is among other legislation tackling the lack of transparency in health coverage. The Consolidated Appropriates Act (CAA) has similar provisions, with additional requirements for a comparison of participating providers within a geographic area and the cost comparison information being available by web and phone.
