Trump Restores Healthcare Price Transparency With New Executive Order

President Donald Trump has reaffirmed his commitment to healthcare cost transparency by signing a new executive order requiring hospitals and insurers to disclose real prices to patients. This directive builds upon a 2019 order that sought to end hidden pricing in the healthcare system, which many Americans have criticized for driving up costs without allowing consumers to make informed decisions.

The order mandates the Departments of Treasury, Labor, and Health and Human Services to create a framework for enforcing price disclosure within 90 days. Hospitals and insurers will be required to provide clear, upfront pricing rather than vague estimates, allowing patients to compare costs across providers and plans. Transparency advocates have long pushed for these reforms, with surveys showing that an overwhelming majority of Americans support full disclosure of medical costs.

Healthcare industry groups have historically fought against price transparency, arguing that revealing negotiated rates could interfere with competition. However, Trump and his administration have maintained that a lack of transparency benefits corporate interests at the expense of patients. “This allows you to go out and talk about [prices],” Trump said while signing the order. “It’s been unpopular in some circles because people make less money, but it’s great for the patient.”

According to research, implementing full price transparency could lead to $80 billion in savings for consumers, employers, and insurers by 2025. One analysis found that employers could reduce healthcare costs by 27% on 500 common services simply by shopping for the best rates. Trump’s order is designed to force compliance from an industry that has resisted such disclosures for years.

Health and Human Services Secretary Robert F. Kennedy praised the move, calling it a major step toward patient empowerment. “This executive order will empower patients with the knowledge they need to make informed health decisions,” he wrote on X. “At @HHSgov, we are fulfilling our promise of radical transparency in healthcare.”

The Biden administration previously faced legal challenges for failing to enforce prescription drug transparency requirements, but Trump’s new order puts insurers and hospitals on notice. With 95% of Americans prioritizing price transparency, this move is expected to be a major issue in the upcoming election.

 

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