Executive Orders Impacting Healthcare
In today’s rapidly evolving healthcare environment, executive orders are playing an increasingly influential role in shaping compliance requirements. Signed by the President, these orders carry the force of law, yet they often have a limited scope and temporary effect. Therefore, it's essential to balance their directives with more permanent federal regulations, such as those from CMS (Centers for Medicare & Medicaid Services) and the OIG (Office of Inspector General).
At Dagger Healthcare Solutions, we specialize in helping healthcare organizations confidently navigate this complex regulatory terrain, ensuring both compliance and readiness for change.
Let’s examine two recent executive orders with direct implications for healthcare compliance.
Executive Order 133877 – "Making America Healthy Again by Empowering Patients with Clear, Accurate, and Actionable Healthcare Pricing Information"
This order mandates that hospitals and insurers disclose the actual prices of services. In doing so, it supports the CMS Hospital Price Transparency Rule. Additionally, it aligns with the No Surprises Act, which requires good faith cost estimates for uninsured and self-pay patients. However, it may conflict with certain state-level privacy laws.
Together, these regulations aim to:
Promote financial transparency
Reduce unexpected medical bills
Empower patients to make more informed decisions
To stay compliant, healthcare providers should:
Update billing and estimation procedures
Improve communication with patients about pricing
Align with both federal and executive mandates
Ultimately, these aligned initiatives are designed to build a more transparent and equitable healthcare system.
Executive Order 14192 – “Unleashing Prosperity Through Deregulation”
Signed in 2025, this directive seeks to remove or modify economically burdensome healthcare regulations. Accordingly, agencies like HHS, CMS, and ONC are tasked with streamlining administrative processes and simplifying reporting.
While the goal is to reduce costs and enhance efficiency, this deregulation must be weighed against existing federal mandates, particularly those under HIPAA and ACA.
HIPAA Conflicts: A Compliance Risk
HIPAA’s Privacy and Security Rules require strict protection of patient data. However, Executive Order 14192 might inadvertently weaken these protections by promoting looser documentation standards or reducing technical safeguards.
Key risks include:
Changes to audit controls or breach notifications
Inconsistent enforcement of encryption or access protocols
Possible legal violations if executive actions oppose HIPAA, which cannot be overridden without Congressional action
What This Means for Providers
Healthcare organizations may find themselves in a compliance gray zone:
Executive orders may suggest regulatory relaxation, while federal agencies still enforce strict standards
Providers may unknowingly commit compliance violations due to misinterpretation of deregulation
Legal and compliance teams must continuously monitor policy updates and apply the strictest applicable standard
Understanding the Legal Hierarchy: Federal Law, State Law, and Executive Orders
In the legal framework of healthcare compliance:
Federal law (e.g., HIPAA) sets the baseline for regulation
State laws may be more stringent, especially in areas like patient privacy
Executive orders provide temporary direction and may fill regulatory gaps—but do not override statutory law
When conflicts arise, the stricter law typically prevails under the principle of federal preemption. However, when ambiguity exists, court decisions or legal interpretations may be required. Therefore, providers should consult legal counsel regularly and stay informed to avoid compliance pitfalls.
Conclusion
At Dagger Healthcare Solutions, we help you anticipate and adjust to regulatory changes—balancing federal, state, and executive directives without compromising compliance or patient care. Our team is committed to guiding your organization through today’s complex regulatory landscape, thereby ensuring you remain ahead.
