Fact Sheet: President Donald J. Trump Announces Actions to Make Healthcare Prices Transparent

Fact Sheets

TLDR

The referenced executive order requires hospitals and insurers to disclose actual healthcare prices, not just estimates, and directs federal departments to enforce Trump-era transparency regulations. It aims to lower costs by enabling comparison shopping, with potential savings of $80 billion by 2025 according to one analysis. The order builds on previous Trump administration policies that were reportedly not prioritized by the Biden administration.

President Trump has signed an Executive Order focusing on healthcare price transparency, aiming to enforce regulations that require hospitals and insurers to disclose actual prices rather than estimates. This order directs the Departments of Treasury, Labor, and Health and Human Services to implement and enforce the Trump-era healthcare price transparency regulations that were reportedly not prioritized by the Biden administration.

Transparency Requirements

  • Hospitals and insurers must disclose actual prices, not just estimates
  • Prices must be made comparable across hospitals and insurers, including prescription drug prices
  • Enforcement policies will be updated to ensure compliance with transparency requirements

Economic Impact

  • The order aims to lower healthcare costs for American families by preventing hospitals and insurance companies from hiding prices
  • One economic analysis suggests that full implementation of Trump’s original price transparency rules could save $80 billion for consumers, employers, and insurers by 2025
  • Employers could potentially lower healthcare costs by an average of 27% on 500 common services through better shopping for care

This Executive Order builds on price transparency initiatives from Trump’s first administration. The Biden Administration was reportedly sued in 2023 for not enforcing prescription drug transparency requirements. According to the order, 95% of Americans consider healthcare price transparency an important priority, with 60% saying it should be a top government priority.

The order cites an example of a Wisconsin patient who saved $1,095 by shopping between two hospitals within 30 minutes of each other, demonstrating the potential consumer benefits of price transparency.

This Executive Order represents a continuation of Trump’s previous healthcare transparency policies rather than a new approach. While increased price transparency could potentially benefit consumers by allowing them to compare costs, the actual impact will depend on implementation and enforcement.

The order assumes that price transparency alone will drive down healthcare costs, but the healthcare market has complex factors beyond price visibility that affect costs and quality. Additionally, the claimed $80 billion in potential savings relies on full implementation and consumer utilization of price information, which may face practical challenges in the complex healthcare system.

The effectiveness of this order will depend on the specific enforcement mechanisms developed by the relevant departments and whether consumers can meaningfully use the price information to make healthcare decisions.

EMPOWERING PATIENTS THROUGH RADICAL PRICE TRANSPARENCY:

Today, President Donald J. Trump signed an Executive Order to empower patients with clear, accurate, and actionable healthcare pricing information.

  • The order directs the Departments of the Treasury, Labor, and Health and Human Services to rapidly implement and enforce the Trump healthcare price transparency regulations, which were slow walked by the prior administration.
  • The departments will ensure hospitals and insurers disclose actual prices, not estimates, and take action to make prices comparable across hospitals and insurers, including prescription drug prices.
  • The departments will update their enforcement policies to ensure hospitals and insurers are in compliance with requirements to make prices transparent.

LOWERING COSTS FOR AMERICAN FAMILIES:

When healthcare prices are hidden, large corporate entities like hospitals and insurance companies benefit at the expense of American patients. Price transparency will lower healthcare prices and help patients and employers get the best deal on healthcare.

  • Prices vary widely from hospital to hospital in the same region. One patient in Wisconsin saved $1,095 by shopping for two tests between two hospitals located within 30 minutes of one another.
  • One economic analysis found that President Trump’s original price transparency rules, if fully implemented, could deliver savings of $80 billion for consumers, employers, and insurers by 2025.
  • Employers can lower their healthcare costs by an average of 27% on 500 common services by better shopping for care.
  • The Biden Administration was sued in 2023 for not enforcing the prescription drug transparency requirements. The Trump Administration will work to hold health plans accountable for making drug prices transparent.

DELIVERING ON PROMISES TO PUT AMERICAN PATIENTS FIRST:

President Trump is delivering on his promise to once again put American patients first by holding the healthcare industrial complex accountable for delivering transparent prices.

  • In his first Administration, President Trump took historic action by mandating that hospitals and insurers make prices public.
  • While the prior Administration failed to prioritize further implementation and enforcement of these requirements, President Trump is delivering on his promises to make the healthcare system more affordable and easier to navigate for patients.
  • American patients are fed up with the status quo – 95% deem healthcare price transparency an important priority, with six in ten saying it should be a top priority of the government.
  • President Trump has long pushed for radical price transparency to ensure the healthcare system puts American patients first:
  • President Trump: “Our goal was to give patients the knowledge they need about the real price of healthcare services. They’ll be able to check them, compare them, go to different locations, so they can shop for the highest-quality care at the lowest cost. And this is about high-quality care. You’re also looking at that. You’re looking at comparisons between talents, which is very important. And then, you’re also looking at cost. And, in some cases, you get the best doctor for the lowest cost. That’s a good thing.”