President Donald Trump has signed a groundbreaking executive order aimed at making healthcare costs more transparent for patients.
The directive instructs regulators to require healthcare providers and insurers to publicly disclose their prices, with the goal of allowing consumers to compare costs and make more informed decisions.
This move strengthens regulations introduced by Trump in 2019, which providers have been slow to fully implement. The former president has long pushed for price transparency in the healthcare industry, arguing that upfront disclosure of costs for common procedures and tests will help drive prices down.
Historically, healthcare pricing has been shrouded in secrecy, with costs determined through private negotiations between hospitals, doctors, insurers, and pharmaceutical companies. These groups have resisted transparency measures, claiming that confidentiality is crucial for maintaining competitive pricing structures.
Andrew Bremberg, former assistant to Trump and director of the Domestic Policy Council, called the executive order a “major statement” from the former president, asserting that it will be a defining element of his healthcare legacy.
However, insurance industry groups argue that such regulations could have unintended consequences, potentially driving premiums higher rather than reducing costs. During Trump’s first term, hospital groups challenged similar mandates, arguing that publicly disclosing every itemized cost would violate their First Amendment rights and weaken their negotiating power.
Despite legal challenges and resistance, Trump has doubled down on his efforts. His previous price transparency order had limited success, with only 14% of hospitals fully complying with the requirement to post their 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” the transparency measures that the previous administration failed to fully enact. This includes ensuring that hospitals and insurers provide actual prices rather than estimates and establishing better price comparisons across different providers.
To strengthen 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 not a strong enough deterrent to ensure compliance.
Cynthia Fisher, founder and chairman of PatientRightsAdvocate.org, praised the move, stating that true price transparency will fundamentally 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 their costs and be protected from overcharges,” Fisher said. “Why would anyone pay $3,000 for an MRI when they could get the same quality 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 comes just days after he signed another measure aimed at expanding access to and lowering the costs of in vitro fertilization (IVF). At the same time, he issued a presidential memorandum advocating for “radical transparency requirements” to cut government waste and inefficiency.
In response to concerns about government spending, Trump highlighted specific global programs he believes contribute to waste, emphasizing his administration’s commitment to fiscal responsibility.
Speaking about 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 step in the right direction.
If Trump’s new healthcare transparency measures survive 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 aims to take this further by focusing on the actual prices negotiated and paid by insurers.
Many policy experts believe high prices are a primary driver of America’s ongoing healthcare affordability crisis, which accounts for approximately 18% of the national economy and places a substantial financial burden on families, taxpayers, and businesses alike.
