The White House praised the decision to reject the American Hospital Association's challenge to the plan.
The rule mandating that hospitals disclose their privately negotiated charges with commercial health insurers is scheduled to take effect on January 1, 2021.
"This transformative hospital price transparency rule has been fought at every step by the swamp and defenders of the status quote," White House press secretary Kayleigh McEnany said in a statement.
She said the court ruling should convince the American people that President Donald Trump will not bow to special interests "who would prefer to keep patients in the dark".
Melinda Hatton, general counsel for the American Hospital Association, said it supports price transparency and making patients' out-of-pocket cost estimates easier to access and understand, but is disappointed with the ruling.