In a major push for healthcare price transparency, U.S. President Donald Trump on Tuesday signed an executive order directing federal agencies to enforce his 2019 regulations that require hospitals and insurers to disclose actual prices of medical services.
The executive order instructs the Departments of Treasury, Labor, and Health and Human Services (HHS) to develop a framework within 90 days to ensure that hospitals and insurers comply with transparency requirements.
What the Executive Order Aims to Achieve
The new order reinforces Trump’s 2019 healthcare transparency regulations, which were designed to:
- Give patients clear, accurate, and actionable pricing information before seeking treatment.
- Make hospital and insurance prices comparable, allowing consumers to shop for the best rates.
- Ensure transparency in prescription drug pricing, preventing hidden fees and unexpected costs.
- Strengthen enforcement policies, ensuring hospitals and insurers fully comply with the law.
During the signing ceremony at the Oval Office, Trump stated:
“You are not allowed to even talk about it (the prices) when you’re going to a hospital or see a doctor. This allows you to go out and talk about it. It’s been unpopular in some circles because people make less money, but it’s great for the patient.”
Trump’s 2019 Price Transparency Rule: What It Covered
Trump first introduced healthcare price transparency regulations in 2019 to reduce costs and empower patients with better pricing information. Key requirements included:
- Hospitals must display prices for 300 shoppable services in a consumer-friendly format.
- Health plans must disclose:
- Negotiated rates with providers.
- Out-of-network payments.
- Actual prices paid for prescription drugs.
- An online tool must be available to allow patients to easily access price comparisons for various treatments.
The Trump administration estimated that fully implementing these rules could save consumers, employers, and insurers up to $80 billion by 2025.
Legal Challenges and Opposition
Several hospital groups opposed the executive order, arguing that:
- It forces them to disclose private negotiations with insurers.
- It undermines competition and violates free speech rights.
However, the courts dismissed these claims, upholding Trump’s price transparency rules.
Even under Joe Biden’s administration, enforcement of prescription drug transparency rules was weak, leading to lawsuits in 2023 for non-compliance.
Impact on Healthcare Costs and Patients
The White House fact sheet on the order suggests that price transparency will:
- Help lower healthcare prices by encouraging competition.
- Allow patients to compare prices before undergoing treatment.
- Give employers better insights into healthcare costs for their employees.
- Reduce hidden fees and unexpected medical bills.
Trump emphasized that patients would be able to choose the highest-quality care at the lowest cost, saying:
“You’re looking at comparisons between talents, which is very important. And then, you look at cost. And, in some cases, you get the best doctor for the lowest cost. That’s a good thing.”
Trump’s healthcare price transparency executive order reinforces his 2019 regulations, ensuring that hospitals and insurers disclose real costs rather than estimates. While the move has faced opposition from hospital groups, it is seen as a major step toward lowering healthcare costs and empowering consumers.
With enforcement now a priority, the success of the policy will depend on how strictly federal agencies hold healthcare providers accountable in the coming months.
