Recently, President Trump issued Executive Order 14221, Making America Healthy Again by Empowering Patients with Clear, Accurate, and Actionable Healthcare Pricing Information, directing the Departments of Treasury, Health and Human Services, and Labor (the “Departments”) to rapidly implement and enforce healthcare price transparency regulations pursuant to Executive Order 13877. The executive order furthers ongoing efforts to improve overall accountability of group health plans and insurers.

As background, Executive Order 13877 was the catalyst for regulations requiring hospitals to publicly post the cost of common items and services (including negotiated rates and charges for services, supplies, and fees provided by the hospital or employees of the hospital); health plans to post negotiated rates with providers as well as out-of-network payments to providers and the actual prices paid for prescription drugs; and health plans to maintain a consumer-facing internet tool wherein individuals can access price information. For more details on Executive Order 13877, see our prior blog, Executive Order Signed Promoting Transparency in Prices and Quality of Health Care.

Aiming to empower individuals to make informed healthcare decisions and ultimately reduce healthcare spending for all (consumers, employers, and insurers alike), the new executive order requires the Departments to take the following action:

  • Disclose actual prices (not estimates) of items and services; and
  • Issue updated guidance (or proposed regulatory action) that:
    • Ensures pricing information is standardized and easily comparable across hospitals and health plans; and
    • Updates enforcement policies designed to ensure compliance with the transparent reporting of complete, accurate, and meaningful data.

Employer Takeaways

Executive orders do not make any immediate changes to the law but rather direct the Departments to issue various regulations and guidance in the future. That said, the Departments have 90 days from the date of the Executive Order to take action (by May 26, 2025) and as such, we expect to see revisions and rulemaking aligned with the directives of the executive order in the near future.

Employer plan sponsors should not begin to implement changes until additional agency guidance is published with an explanation of any required action. Sequoia will continue to monitor this information closely and will communicate updates on further legislative & regulatory developments.

Additional Resources

Connect with a Sequoia consultant to learn how Sequoia’s compliance services are integrated in our benefits services and tailored solutions. And if you’re already a Sequoia client, stay on top of your employer obligations with your Compliance Checklist that highlights important compliance dates, action items, and resources.  

The information and materials on this blog are provided for informational purposes only and are not intended to constitute legal or tax advice. Information provided in this blog may not reflect the most current legal developments and may vary by jurisdiction. The content on this blog is for general informational purposes only and does not apply to any particular facts or circumstances. The use of this blog does not in any way establish an attorney-client relationship, nor should any such relationship be implied, and the contents do not constitute legal or tax advice. If you require legal or tax advice, please consult with a licensed attorney or tax professional in your jurisdiction. The contributing authors expressly disclaim all liability to any persons or entities with respect to any action or inaction based on the contents of this blog. © 2024 Sequoia Consulting Group. All Rights Reserved. 

Diane Cross — Diane is a Client Compliance Consultant for Sequoia, where she works with our clients to optimize and streamline benefits compliance. In her free time, Diane enjoys spending time with her family, live music, and cycling.