WASHINGTON — Federal officials have issued warnings to over 500 hospitals across the nation for not making basic medical pricing information available to the public, claiming this secrecy keeps healthcare expenses unnecessarily high.
The Associated Press exclusively received the roster of medical facilities that have gotten warning notices or been asked to submit compliance plans since April. Medical centers that ignore these warnings could face annual penalties reaching $2 million each if they fail to develop plans for posting clear cost information.
These notices aim to address a core issue where patients, businesses and insurance companies often remain unaware of expenses for blood tests, imaging procedures or other medical services beforehand, resulting in higher costs than necessary. AP has published the complete hospital list.
A high-ranking administration official, speaking anonymously to share the information, indicated that President Donald Trump intends to strengthen enforcement of pricing disclosure rules established through a 2019 executive order he signed. Additional hospitals will likely receive similar notices about missing cost data, the official stated.
These warnings represent another instance of Trump emphasizing his administration’s efforts to address healthcare costs that can devastate household finances. This strategic messaging comes before November midterm elections when affordability ranks as a primary voter concern. However, Trump faces vulnerability on healthcare issues, since his administration let insurance subsidies expire for people purchasing coverage through the 2010 Affordable Care Act, commonly called Obamacare.
Only 29% of American adults supported Trump’s healthcare policies in the latest Associated Press-NORC Center for Public Affairs Research poll on this topic. The president performed somewhat worse on healthcare in the December survey compared to his ratings on economic policy, immigration or federal government oversight.
This transparency initiative could significantly affect Republican stronghold states including Texas, Florida, Indiana, Alabama and Louisiana, which rank among states with the most hospitals failing to provide sufficient medical service cost details.
Texas led with 42 hospitals receiving warnings. Baptist Medical Center in San Antonio, Texas, one of the state’s largest facilities with 1,585 beds, got a letter, along with the University of Texas MD Anderson Cancer Center in Houston.
Ascension, a Missouri-headquartered system among the nation’s largest hospital networks, had 13 facilities across various states receive letters. Republican-controlled Indiana received 34 hospital warnings, nearly matching the 38 in Democratic-controlled California, despite California having five times Indiana’s population.
Administration officials interviewed for this story pointed out that Christiana Hospital in Biden’s home state of Delaware also got a warning notice.
These letters highlight contrasting Republican and Democratic approaches to managing escalating healthcare expenses, which also threaten the federal government’s financial stability.
Biden’s administration emphasized record Obamacare enrollment numbers that boosted the percentage of insured Americans. Biden also enacted legislation allowing government negotiation of certain Medicare drug prices directly with pharmaceutical manufacturers. This program, continuing into Trump’s second term, has reduced list prices for some of Medicare’s most expensive medications.
The Trump administration instead focuses on providing pricing details — like promoting the TrumpRx prescription drug website — believing this approach will improve healthcare spending efficiency through better data analysis.
Critics argue Trump’s negotiated prescription drug prices may not deliver real savings for many insured Americans, while the administration projects savings exceeding $500 billion across 10 years.
Through various hospital pricing lists, the administration wants providers to simplify file access and guarantee accurate information rather than estimates or missing data for important procedures.
The House Committee on Energy and Commerce has scheduled a Wednesday hearing on price transparency.
“Transparency is the foundation of a healthcare system that rewards competition based on cost and quality,” Shawn Gremminger, CEO of the National Alliance of Healthcare Purchaser Coalitions, plans to state in his prepared testimony.
