Former President Donald Trump signed a significant executive order aimed at increasing transparency in healthcare costs for patients.
The order directs regulators to mandate that healthcare providers and insurers publicly disclose their prices, enabling consumers to compare costs and make informed decisions.
This initiative builds upon regulations introduced by Trump in 2019, which have faced sluggish implementation. He has consistently advocated for price transparency in healthcare, arguing that upfront disclosure of costs for common procedures and tests will drive prices down.
Traditionally, healthcare pricing has been opaque, with costs determined through private negotiations among hospitals, doctors, insurers, and pharmaceutical companies. These groups have opposed transparency measures, contending that confidentiality is vital for maintaining competitive pricing structures.
Andrew Bremberg, former assistant to Trump and director of the Domestic Policy Council, described the executive order as a “major statement” from Trump, asserting that it will be a cornerstone of his healthcare legacy.
However, insurance industry groups caution that these regulations could have unintended consequences, potentially increasing premiums instead of lowering costs. During Trump’s first term, hospital groups challenged similar mandates, arguing that public disclosure of itemized costs would violate their First Amendment rights and weaken their negotiating leverage.
Despite legal challenges and industry resistance, Trump has remained committed to price transparency. His previous order saw limited success, with only 14% of hospitals fully complying with the requirement to post prices in 2022.
According to the White House, the new order directs the Departments of Treasury, Labor, and Health and Human Services to swiftly implement and enforce transparency measures that were not fully realized under the previous administration. This includes ensuring that hospitals and insurers provide actual prices rather than estimates and facilitating better cost comparisons across providers.
To enhance enforcement, the executive order also directs federal agencies to revise penalties for non-compliance. Under Trump’s 2019 order, hospitals faced a $300-per-day fine, which critics argue was insufficient to ensure compliance.
Cynthia Fisher, founder and chairman of PatientRightsAdvocate.org, praised the initiative, stating that true price transparency will transform the healthcare system.
“Real prices unleash competition and shift power to the true purchasers of care—patients, employers, and taxpayers—allowing them to lower costs and avoid overcharges,” Fisher said. “Why pay $3,000 for an MRI when the same quality is available for $300? Likewise, no patient would willingly accept a $12,000 colonoscopy bill when the fair market price is around $1,000.”
Trump’s latest executive order follows another recent measure aimed at expanding access to and reducing the costs of in vitro fertilization (IVF). Additionally, he issued a presidential memorandum advocating for “radical transparency requirements” to cut government waste and inefficiency.
Addressing concerns about government spending, Trump identified global programs he believes contribute to waste, emphasizing his administration’s commitment to fiscal responsibility.
Regarding his IVF order, Trump stated, “I think women and families, husbands, are very appreciative,” describing the initiative as a solution for couples struggling with infertility.
Barbara Collura, president and CEO of Resolve: The National Infertility Association, expressed optimism about the White House’s actions, saying the policy “looks extremely promising.”
She noted that out-of-pocket costs and lack of insurance coverage remain significant barriers for families seeking fertility treatments, and any effort to address these challenges is a positive step forward.
If Trump’s new healthcare transparency measures withstand legal scrutiny, their long-term impact remains uncertain. While greater price visibility could empower patients and employers to make cost-conscious choices, many consumers still rely heavily on their doctors’ recommendations and insurance networks when selecting care providers.
The push for healthcare price transparency gained traction during the Obama administration when then-HHS Secretary Kathleen Sebelius oversaw efforts to disclose hospital list prices. Trump’s initiative seeks to advance this further by focusing on actual prices negotiated and paid by insurers.
Many policy experts believe high healthcare costs are a key driver of America’s ongoing affordability crisis, which accounts for approximately 18% of the national economy and imposes a significant financial burden on families, taxpayers, and businesses alike.