President Donald Trump on Tuesday signed an executive order directing the departments of the Treasury, Labor, and Health and Human Services to make healthcare prices transparent.
The order directs the departments to ‘rapidly implement and enforce’ the Trump healthcare price transparency regulations, which he claims were slowed by the Biden 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.
In addition, they will be required to update their enforcement policies to ensure hospitals and insurers are in compliance with requirements to make prices transparent.
‘When healthcare prices are hidden, large corporate entities like hospitals and insurance companies benefit at the expense of American patients,’ the White House wrote in a statement. ‘Price transparency will lower healthcare prices and help patients and employers get the best deal on healthcare.’
The executive order notes a number of concerns with current healthcare pricing, including that prices vary between hospitals 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,’ according to the statement.
The White House claims one economic analysis found Trump’s original price transparency rules, if fully implemented, could deliver savings of $80 billion for consumers, employers and insurers by 2025.
It added that employers will lower their healthcare costs by an average of 27% on 500 common services by better shopping for care.
‘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,’ Trump wrote in the statement. ‘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.’
The White House said American patients are ‘fed up with the status quo,’ with 95% saying healthcare price transparency is an important priority. More than 50% said it should be a top priority of the government.
In his first term, Trump took historic action by mandating that hospitals and insurers make prices public.
A lawsuit was filed against the Biden administration in 2023, alleging it did not enforce the prescription drug transparency requirements.
‘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,’ according to the statement.
Fox News Digital previously reported the administration’s tariffs on China will affect drug costs.
Consumers are more dependent on China for medications for anxiety and other psychiatric disorders, such as antidepressants.