Executive Order 13877-Improving Price and Quality Transparency in American Healthcare To Put Patients First
Issued 2019-06-24 by Donald J. Trump
Plain-English Overview
AI-generated summary explaining what this action does, who it affects, and why it matters
This executive order directs federal agencies to work on making healthcare prices more visible to patients before they receive care. The goal is to help patients know in advance what a medical service will cost so they can compare prices and make informed decisions about where to get treatment. The order focuses particularly on "shoppable services"—common medical procedures that multiple providers offer and that patients can research ahead of time, rather than emergency situations.
The order affects anyone who seeks healthcare, particularly patients trying to understand their costs before scheduling appointments or procedures. It also aims to address surprise billing, where patients receive unexpected bills at high prices from medical providers they didn't choose. By requiring more upfront price information, the order seeks to help patients avoid these situations and understand their potential out-of-pocket costs before receiving care.
This matters because, according to the order, patients currently often lack access to useful price information in the healthcare system. The order states that making prices more transparent could lead to competition among healthcare providers and help patients find lower-cost options. The order works within the President's constitutional authority to direct how executive branch agencies implement existing laws, though its actual effect depends on how agencies carry out these directions within their legal authority.
AI-generated summary for educational purposes
Constitutional Analysis
How this action fits (or doesn't) within Article II authority and existing law
Executive Order 13877 ("Executive Order 13877-Improving Price and Quality Transparency in American Healthcare To Put Patients First") directs federal agencies on implementation of existing law. The President's stated goal: "that healthcare patients can make well-informed decisions about their care." Under Article II's "Take Care" clause, the President has constitutional authority to direct how the executive branch enforces the laws Congress has enacted. Setting agency priorities, establishing implementation frameworks, and coordinating action across departments are core presidential functions.
As long as this order operates within existing statutory authority and does not contradict congressional mandates, it is a routine exercise of executive power. The order's legal weight depends on the specific statutes it invokes and how it directs agencies to interpret their mandates. Subordinate agencies must follow presidential direction, but only to the extent consistent with their underlying statutory authority.
Official Summary
Administration of Donald J. Trump, 2019 Executive Order 13877—Improving Price and Quality Transparency in American Healthcare To Put Patients First June 24, 2019 By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows: Section 1 . Purpose . My Administration seeks to enhance the ability of patients to choose the healthcare that is best for them. To make fully informed decisions about their healthcare, patients must know the price and quality of a good or service in advance. With the predominant role that third-party payers and Government programs play in the American healthcare system, however, patients often lack both access to useful price and quality information and the incentives to find low-cost, high-quality care. Opaque pricing structures may benefit powerful special interest groups, such as large hospital systems and insurance companies, but they generally leave patients and taxpayers worse off than would a more transparent system. Pursuant to Executive Order 13813 of October 12, 2017 (Promoting Healthcare Choice and Competition Across the United States), my Administration issued a report entitled "Reforming America's Healthcare System Through Choice and Competition."