Trump’s Price Transparency Executive Order: What It Means & What You Can Do

Key takeaways

• Less than 25% of hospitals comply with the original Price Transparency Rule
• The February 25 executive order is a second attempt at giving patients, employers, and consumers clear hospital prices
• Precedents like the Airline Price Transparency Rules (2012) and FDA Nutrition Labeling (1990) show policy signals can become accepted standards
• Progress requires combined pressure: enforcement threats plus the voices of employers, brokers, technology companies, and patients

As the saying goes - if at first you don’t succeed, try, try again. Despite the Trump administration’s first try at forcing hospital price transparency, less than a quarter of hospitals are complying with the Price Transparency Rule. Along with a flurry of other executive orders, the recent order released on February 25th seems to be taking another run at giving patients, employers and consumers a clearer look into hospital prices.

Skeptics might argue that a single executive order without commensurate enforcement action won’t change much, and that the move may not have lasting power. There’s good reason to hesitate, as industry pushback and other politicking could thwart the second attempt just as it did the first.

But history tells us that political gambits (such as introducing bills that likely won’t pass, or executive orders that send a signal) can be conversation-starters for larger policy and enforcement shifts, assuming the right voices speak up. The Airline Price Transparency Rules (2012), which forced airlines to disclose all fees upfront, started with increasing regulatory pressure and evolved into a widely accepted industry standard. The FDA Nutrition Labeling Regulations (1990) transformed the way consumers make food choices, despite early resistance from major food corporations. It’s possible for everyday people to usher in an era of policy enforcement and widespread adoption of new business norms; it’s just not always easy.

Whose voices are needed for change?

This isn’t the first policy attempt at making healthcare more consumer- and market-friendly, either. The No Surprises Act (2022) eliminated surprise medical billing, the Interoperability & Patient Access Rule (2020) made health data more accessible and the HIPAA Right of Access Initiative (2019) gave patients the right to obtain their medical records without delays. These laws made real progress in healthcare - despite industry pushback - by combining the velocity and voice of industry and consumers together. Making a case for change based on efficient, more competitive business practices can be “complemented” by a threat of enforcement action and legal risk.

So who will be the voice for price transparency this time around? Along with the “complement” of enforcement threats, we believe it’s people like us: Employers tired of overpaying for healthcare, brokers demanding clarity for their clients, technology companies ready to create more value and patients refusing to accept hidden, sky-high or wildly variable costs. If we leave it up to government policies and executive actions alone, we might still be having this same conversation a decade from now. But if we start demanding more transparency from our healthcare system, we can make progress on setting a new norm. The choice is ours.