On February 25, 2025, President Trump issued an Executive Order titled “Making America Healthy Again by Empowering Patients with Clear, Accurate, and Actionable Healthcare Pricing Information”, designed to boost enforcement of healthcare price transparency rules, raising the risks for hospitals and health plans that don't comply.
What happened
President Trump’s February 2025 Executive Order directs heightened enforcement of healthcare price transparency regulations, increasing risks for non-compliant healthcare providers. This new directive strengthens a 2019 Executive Order, calling for stricter penalties and oversight, including fines, lawsuits, and potential criminal investigations. Healthcare organizations, particularly hospitals and insurers, are now at higher risk of facing penalties for failing to disclose clear, accurate pricing information as required by the Affordable Care Act’s transparency mandates. The federal government plans to ramp up enforcement with both administrative and civil actions to ensure compliance.
The backstory
In 2019, a previous Executive Order aimed to increase healthcare pricing transparency, focusing on the requirement for hospitals to disclose standard charges for services. A 2024 audit found that nearly half of hospitals were still not complying, leading to frustrations over confusing regulations and limited resources.
Going deeper
- Increased enforcement: The 2025 Executive Order empowers the Treasury, Labor, and Health and Human Services Departments to enforce transparency rules, including higher penalties for non-compliance.
- Civil and criminal penalties: Non-compliance may lead to civil lawsuits and even criminal liability in severe cases of fraud or misleading practices.
- Challenges for providers: Healthcare providers face an added burden to meet compliance, with concerns over the accuracy and completeness of pricing data posted online.
- Consumer rights advocacy: Groups like Patient Rights Advocate.org call for stronger enforcement and no tolerance for estimates in favor of actual pricing disclosures.
What was said
President Donald J. Trump emphasized the administration's commitment to enhancing healthcare price transparency. He stated, “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.”
In the know
The 2025 Executive Order builds on the Price Transparency Order of 2019 and emphasizes the need for clear and accurate pricing information. Under this rule, healthcare providers must publicly post their pricing information, including negotiated rates, out-of-network costs, and prescription drug prices. This is meant to improve consumer access to healthcare cost data and allow for more informed decision-making.
Why it matters
The new Executive Order signals an escalation in efforts to ensure healthcare pricing is transparent, impacting hospitals, insurers, and payers. Non-compliance carries significant legal, financial, and reputational risks for healthcare organizations. As more aggressive enforcement measures are introduced, healthcare entities will need to prioritize compliance or face heavy penalties, lawsuits, and potential criminal liability.
The bottom line
The 2025 Executive Order increases the risk of legal and financial consequences for healthcare providers failing to comply with price transparency regulations. Healthcare organizations must review their compliance measures to avoid penalties, litigation, and damage to their reputation.
FAQs
What specific penalties can healthcare providers face under the new executive order?
The executive order outlines potential fines, lawsuits, and even criminal investigations for non-compliance with price transparency regulations.
How does the new executive order differ from the 2019 order?
The 2025 order strengthens enforcement mechanisms, including higher penalties and a broader scope of regulatory oversight compared to the 2019 order.
How does this executive order affect healthcare consumers?
The executive order aims to empower consumers by providing them with clear, accurate, and actionable pricing information to make informed healthcare decisions.
Why is price transparency so important in healthcare?
Price transparency allows consumers to compare healthcare costs, shop for high-quality care at lower costs, and make better decisions about their healthcare needs.
