New Executive Order Enforces Healthcare Price Transparency

Introduction

On February 25, 2025, the White House issued a new executive order aimed at strengthening healthcare price transparency measures. This move builds upon President Trump’s 2019 executive order, which was founded on Section 1311(e)(3) of the ACA, mandating transparency and disclosure from qualified health plans.

Implementation of New Regulations

The new directive instructs the Departments of the Treasury, Labor, and Health and Human Services to accelerate the implementation of transparency regulations. These regulations initially announced in 2020, require health plans to provide cost-sharing details on all items and services through machine-readable files on public websites for plan years starting January 1, 2024.

Enhanced Enforcement

While the original implementation allowed for discretion in enforcement, new guidance suggests a more robust approach will be taken. The President has tasked the respective Secretaries to ensure all necessary actions are taken within 90 days to:

• Disclose actual prices of items and services, not merely estimates.
• Standardize pricing information across health plans and hospitals for easier comparison.
• Update enforcement policies to ensure compliance with accuracy and transparency requirements.

Action Required

Health plans yet to comply with posting machine-readable files or incomplete data should collaborate with their TPA and legal advisors to meet these requirements. Prompt action is necessary to avoid potential penalties under the stepped-up enforcement plan.