Trump Demands Swift Action on Medical Price Transparency
A new executive directive enhances the enforcement of pricing regulations established during Trump’s initial term.
On February 25, President Donald Trump enacted an executive order mandating price transparency in the healthcare sector.
“Currently, patients are often unable to discuss [prices] when visiting hospitals or doctors, and this order changes that,” Trump remarked about the executive measure.
The directive seeks to enhance adherence to a federal regulation initiated during Trump’s first administration.
Established in 2019, the Transparency in Coverage regulation mandates that group insurers and health plans publicly disclose their in-network payment rates to foster price competition and lower costs.
“Regrettably, advancements in price transparency at the federal level have stagnated following the conclusion of my first term,” Trump stated in this new executive order.
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“Hospitals and health plans have not faced sufficient accountability for situations where their price transparency data is incomplete or even absent.”
For instance, the report noted inappropriate reporting of knee replacement surgery rates for dentists and optometrists, who are not qualified to perform the procedure.
Additionally, variations in pricing for identical services within the same network at the same hospital were identified, making it unclear which rate should be applied.
The Make America Healthy Again order tasks the secretaries of the Treasury, Labor, and Health and Human Services with swiftly enforcing the price transparency regulations implemented in 2019.
Within 90 days, these agencies must ensure that actual prices for items and services are disclosed instead of estimates, standardize medical price information for easier comparison across hospitals and health plans, and either issue guidance or propose regulations to guarantee compliance with this regulation.
This action is deemed necessary due to significant price disparities among hospitals within the same region, as articulated by the White House.
A patient in Wisconsin reportedly saved $1,095 by comparing prices for medical tests between two hospitals situated just 30 minutes apart, as stated in a February 25 White House announcement.
“One economic assessment indicated that if fully implemented, President Trump’s original price transparency regulations could save consumers, employers, and insurers up to $80 billion by 2025,” the announcement revealed.
Price transparency in healthcare has historically garnered bipartisan support, with certain measures enacted in 2021.
The No Surprises Act, which came into force in 2022, safeguards consumers from unexpected high bills for emergency services provided by out-of-network providers, including air ambulances and non-emergency care from in-network facilities.
In the past, insurance companies often reimbursed out-of-network providers at significantly lower rates, particularly for emergency services, leaving patients liable for the difference.
This act mandates that emergency services be covered without requiring prior authorization, regardless of the patient’s network affiliation with a provider or facility.
A related law, effective in 2021, compels all U.S. hospitals to furnish clear online pricing information regarding their services.
This information must be accessible in a machine-readable format that encompasses all items and services, alongside a user-friendly presentation of services.
