President Donald Trump signed an executive order on Tuesday directing that the Departments of Treasury, Labor, and Health and Human Services make healthcare prices transparent.
This order instructs departments to “rapidly enforce and implement” Trump’s healthcare price transparency regulations. He claims that the Biden Administration slowed down the implementation of these regulations. They will also ensure that hospitals and insurance companies disclose their actual prices and not just estimates.
They will also be required to upgrade their enforcement policies to ensure that hospitals and insurance companies are complying with the requirements for price transparency.
In a recent statement, the White House said that when healthcare prices are kept secret, big corporations like insurance companies and hospitals benefit to the detriment of American patients. Price transparency can lower healthcare costs and allow patients and employers to get the best deals on healthcare.
In the executive order, there are a few concerns about current pricing for healthcare. One of these is that hospital prices can vary within a region.
According to the report, “One Wisconsin patient saved $1095 on two diagnostic tests by choosing two hospitals within a 30-minute drive of each other.”
According to the White House, an economic analysis concluded that Trump’s price transparency regulations, if implemented fully, would result in savings for employers, consumers, and insurance companies of up to $80 billion in 2025. By shopping around for healthcare, employers can lower their healthcare costs by 27% on average.
In a statement, Trump said, “They will be able to compare, check, and go to other locations to find the best care for the least cost. This is all about quality care. Also, you’re looking at it. Comparing talents is important. You also consider the cost. In some instances, the doctor who is the most affordable may be the best. It’s good.”
The White House stated that American Patients were “fed up” with the current status quo, with 95% saying transparency in healthcare prices is a priority. Over 50% of respondents said it should be the top priority for the government.
Trump’s first term saw him take a historic step by mandating hospitals and insurance companies to make their prices publicly available. In 2023 a lawsuit was filed alleging that the Biden Administration did not adhere to the transparency requirement for prescription drugs.
The statement said, “While the previous Administration did not prioritize the further implementation and enforcement of these requirements, President Trump delivers on his promise to make healthcare more affordable and easy to navigate for the patients.”
The tariffs imposed by the Trump administration on China would affect drug prices. China is the main source of medication for mental disorders such as anxiety.