President Donald Trump signed an executive order Feb. 25 aimed at strengthening health care price transparency, a move that could help Black Americans and other patients make more informed decisions about their medical expenses.
The order directs federal agencies, including the Departments of Treasury, Labor and Health and Human Services, to enforce transparency rules more strictly, building on regulations Trump introduced during his first term, according to a White House fact sheet.
During his first term in the Oval Office, his administration previously mandated hospitals and insurers disclose actual prices for services, rather than estimates, to give consumers more power in choosing affordable care, according to White House documents.
Trump said the initiative is designed to lower health care costs and hold large entities such as hospitals and insurance companies accountable.
“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,” Trump said in the fact sheet.
Health care costs disproportionately impact Black families, who are more likely to face financial barriers to medical care, according to data from the Kaiser Family Foundation. By requiring providers to disclose actual prices upfront, the policy could enable Black Americans to compare costs, seek more affordable treatment and potentially reduce disparities in access to quality health care.
Research has shown that Black Americans experience higher rates of chronic conditions such as hypertension and diabetes, making consistent and affordable health care access critical. Transparency in pricing could help individuals and families avoid surprise medical bills and excessive charges, particularly in communities where health care costs can vary widely by location.
However, hospitals and insurance companies have long resisted such transparency measures, arguing that revealing negotiated rates undermines competition, according to several reports. Many providers failed to comply with a 2021 rule requiring hospitals to post prices online, despite facing potential fines.
A November review by Patient Rights Advocate, a nonprofit that tracks hospital price transparency, found that only 21 percent of 2,000 hospitals analyzed were in full compliance with transparency requirements.
The Department of Health and Human Services’ inspector general released a separate audit last year estimating that 46 percent of hospitals were not fully adhering to the rules, a higher projection than the Patient Rights Advocate’s findings.
Health care prices have historically been kept private among hospitals, insurers, pharmaceutical companies and doctors, leaving many patients unaware of the actual costs of procedures and medications until after receiving care.
Trump’s order does not introduce new pricing policies but signals potential increased enforcement against noncompliant hospitals and insurers, according to Newsweek. It remains unclear how aggressively federal agencies will pursue penalties for those failing to meet transparency requirements.
Hospitals and insurers strongly opposed the previous rule Trump issued in the final year of his first term, with some filing lawsuits to challenge its implementation. Despite resistance, the president has maintained that price transparency benefits patients by allowing them to shop for cost-effective, high-quality care.
“This is about high-quality care. You’re also looking at that,” Trump said. “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.”
While health care advocates have praised the effort to improve transparency, some experts caution that pricing alone may not fully address the systemic barriers many Black Americans face in obtaining care, including coverage gaps, provider shortages and socioeconomic challenges.
The long-term impact of Trump’s order will depend on enforcement and whether hospitals and insurers comply with transparency regulations. In the meantime, supporters argue that greater price disclosure is a step toward improving affordability and access, particularly for communities disproportionately burdened by high healthcare costs.
