Executive order directs HHS to focus on price transparency

President Donald Trump recently signed an executive order that directs HHS and other federal departments to update price transparency guidance and enforcement efforts. The executive order signals the current administration’s intent to prioritize price transparency policies stemming from Trump’s first term.

The executive order directs HHS to take actionable steps on the following within 90 days:

• Require the disclosure of the actual prices of items and services, not estimates
• Issue updated guidance or proposed regulatory action ensuring pricing information is standardized and easily comparable across hospitals and health plans
• Issue guidance or proposed regulatory action updating enforcement policies designed to ensure compliance with the transparent reporting of complete, accurate, and meaningful data

The Hospital Price Transparency final rule, which took effect on January 1, 2021, requires hospitals to list all prices online in a machine-readable file (MRF) and a consumer-friendly display or tool for the 300 most common shoppable services.

Since the rule’s publication, HHS has continued to take steps to ensure transparent healthcare pricing and boost hospitals’ compliance with the regulations. In 2023, CMS updated its enforcement processes and began requiring corrective action plan completion deadlines, imposing civil monetary penalties earlier and automatically, and streamlining the compliance process.

In the 2024 Outpatient Prospective Payment System final rule, CMS strengthened its enforcement capabilities and finalized a slew of new price transparency requirements with staggered implementation timelines. In recent years, hospitals have had to standardize files, incorporate new data elements, and improve accessibility to maintain compliance.

PatientRightsAdvocate.org recently released its latest semi-annual report on hospital price transparency compliance, finding that hospitals are still struggling to comply with price transparency requirements nearly four years after the rule took effect. The nonprofit analyzed 2,000 publicly available hospital websites between July 1 and November 13, 2024, and determined that only 421 (21.1%) were in full compliance. The 1,579 noncompliant hospitals failed to meet at least one price transparency requirement. The report also details how policy rollbacks may be causing low compliance rates and impacting consumers' experiences. 

Revenue cycle professionals can read the report for more information on recent price transparency compliance trends.