The executive order, signed on June 24, 2019, by President Donald J. Trump, is designed to combat rising inflation. The order aims to leverage various governmental resources and tools to stabilize prices and mitigate economic pressures. By focusing on a coordinated federal approach, the Trump administration seeks to address the key factors contributing to inflation, intending to foster broader economic stability.
The initiative calls on all federal agencies and cabinet secretaries to employ their available resources to combat inflationary trends. Through this coordinated effort, the administration looks to significantly curb the impact of inflationary pressures on American households. This rigorous approach aims to bring transparency and control to elements exacerbating the current economic situation.
Enhancing Transparency and Reducing Surprise Billing
The executive order emphasizes transparency in pricing and quality within healthcare as a significant component of stabilizing prices. Building on previous executive orders like Executive Order 13813 and the health systems reform report, the new mandate requires hospitals to publicly post standard charges. By providing clear, accessible pricing information, the administration aims to empower consumers with the information they need to make informed healthcare decisions.
Additionally, this move focuses on protecting patients from surprise billing, ensuring they have access to pricing information in advance. Patients can better understand out-of-pocket costs and choose the most affordable healthcare options available, thus reducing financial stress and contributing to overall economic stability.
Historic Price Transparency Regulations
Regulatory changes issued by the Department of Health and Human Services (HHS) and the Centers for Medicare & Medicaid Services (CMS) reinforce this initiative. Key regulations include the CY 2020 Outpatient Prospective Payment System (OPPS) and the Transparency in Coverage Proposed Rule. Both rules mandate that pricing information must be made publicly available, enabling better competition among healthcare providers.
“President Trump has promised American patients ‘A+’ healthcare transparency, but right now our system probably deserves an F on transparency,” said HHS Secretary Alex Azar. “President Trump is going to change that, with what will be revolutionary changes for our healthcare system. Today’s transparency announcement may be a more significant change to American healthcare markets than any other single thing we’ve done, by shining light on the costs of our shadowy system and finally putting the American patient in control.”
These regulations further mandate that healthcare plans disclose price and cost-sharing information to participants. By providing real-time, personalized cost-sharing data through an online tool, consumers gain vital information to make the most economical choices. Organizations failing to comply will face fines and other penalties, ensuring adherence to the new rules.
