WASHINGTON, D.C. — September 2, 2025 — Millions of Americans will soon have new access to real-time prescription drug price information under a federal rule set to take effect October 1, U.S. Department of Health and Human Services (HHS) officials announced Tuesday.
The reform is designed to make health care more transparent and affordable by allowing patients and doctors to compare drug prices, review out-of-pocket costs, and navigate prior authorization requirements directly at the point of care.
The rule requires health care providers using certified health IT systems to electronically submit prior authorizations, exchange prescription data with insurers and pharmacies, and ensure that medications align with a patient’s insurance coverage. Officials say the change will reduce delays in treatment and cut down on administrative burdens that have long frustrated both patients and providers.
“This is about improving patient outcomes, cutting provider burden, and ensuring full transparency at the point of care,” said HHS Secretary Robert F. Kennedy, Jr. “We are delivering on our promise to Make America Healthy Again.”
CMS Administrator Dr. Mehmet Oz called the move a major step forward: “Prior authorization should never stand in the way of timely treatment. This new system will make care simpler, fairer, and more affordable.”
Between 2023 and 2024, prior authorization issues were a leading cause of treatment delays across Medicare Advantage and Medicaid programs, according to federal data. By streamlining the process, officials believe the policy could save billions in administrative costs and free up millions of clinician hours.
The rule comes after a June 2025 roundtable with health insurers covering nearly 80% of Americans, where companies pledged to cut red tape and boost transparency.
Officials said the change is expected to particularly benefit Medicare Part D patients, who will now be able to see lower-cost alternatives during visits and make more informed decisions with their doctors.
The reform builds on recent efforts by the Centers for Medicare & Medicaid Services (CMS) and the Office of the National Coordinator for Health IT (ASTP/ONC) to strengthen interoperability, ensuring health data flows more seamlessly between providers, insurers, and patients.
