Trump executive order makes health care pricing more transparent News
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Trump executive order makes health care pricing more transparent

US President Donald Trump signed an executive order on Monday in an attempt to improve health care price transparency. The order directs various federal agencies, including the Department of Health and Human Services (HHS) to put forward policy changes to give patients more information about their health care pricing.

The new executive order comes roughly a week after the administration completed its final regulation from Trump’s previous order on health care from October 2017. That action, Executive Order 13813, focused on increasing choice and competition. Accordingly, the administration continues to propose health care policy by now focusing on patient access to cost information.

Typically, health care prices are determined by contracts between hospitals and insurers, which are not made available to the public. These rates can drastically fluctuate from health plans and providers. As a result, it is argued, that consumers are not able to make an informative decision concerning which health plan is most cost effective to them.

In this order, HHS and other agencies are directed to draft regulations focused on price transparency. Specifically, the agencies are required to offer two proposals: regulations requiring hospitals to disclose actual costs patients will pay and others requiring insurers and providers to inform patients of out-of-pocket costs before rendering any services. The proposed regulations are to be drafted and presented within 60 days.

Other elements of the order suggest expanded use of  health-savings accounts, more access to de-identified medical-claims data, and simplified requirements for quality reporting. In a press release, HHS Secretary Alex Azar said the executive order is a major step “to put American patients in control of their care.”