Possibly. But if it was your loved one, would you like to be shut out of the dealings in favor of some bureaucrat?
Other countries allow this. Reagan did it. It's easy to say "Never negotiate!" But in the real world, we shouldn't be governed by bumper sticker logic.
This is actually government surrendering a little power. It sounds like a positive step to me.
“But if it was your loved one, would you like to be shut out of the dealings in favor of some bureaucrat?”
Now that bureaucrat can wash his hands. Just pay them!
And, imagine a fake hostage situation being used to funnel (launder) money to ISIS or Boku Haram.