Trump signs executive order to make healthcare prices ‘transparent’
President Donald Trump took a significant step on Tuesday by signing an executive order directing the departments of the Treasury, Labor, and Health and Human Services to make healthcare prices transparent. The order aims to ensure that hospitals and insurers disclose actual prices rather than estimates, allowing patients to make informed decisions about their healthcare spending.
The Trump administration claims that the implementation of healthcare price transparency regulations was slowed down by the Biden administration. Therefore, the executive order directs the departments to swiftly enforce these regulations and make prices comparable across hospitals and insurers, including prescription drug prices.
The White House stated that when healthcare prices are hidden, large corporate entities like hospitals and insurance companies benefit at the expense of American patients. By making prices transparent, the administration hopes to lower healthcare costs and empower patients and employers to make more informed choices about their healthcare.
One of the key concerns addressed in the executive order is the variation in prices between hospitals in the same region. For example, one patient in Wisconsin saved $1,095 by shopping for two tests between two hospitals located within 30 minutes of each other. By promoting price transparency, the administration aims to deliver significant savings of $80 billion for consumers, employers, and insurers by 2025.
Employers are expected to lower their healthcare costs by an average of 27% on 500 common services by better shopping for care. This will enable them to compare prices, quality of care, and choose the best healthcare options at the lowest cost. The administration emphasized that American patients are demanding transparency in healthcare pricing, with 95% considering it an important priority and over 50% believing it should be a top priority for the government.
In his first term, President Trump mandated hospitals and insurers to make prices public, marking a historic move towards greater transparency in the healthcare system. However, a lawsuit was filed against the Biden administration in 2023, alleging a lack of enforcement of prescription drug transparency requirements.
The administration’s efforts to promote healthcare price transparency are crucial in making the healthcare system more affordable and easier to navigate for patients. By ensuring that prices are transparent, patients can make informed decisions about their healthcare spending and access high-quality care at the lowest cost.
In conclusion, President Trump’s executive order on healthcare price transparency is a significant step towards empowering patients and employers to make informed decisions about their healthcare spending. By promoting transparency in healthcare pricing, the administration aims to lower healthcare costs and deliver significant savings for consumers, employers, and insurers.
