Trump administration bets big on patient-controlled health data — but privacy risks loom

The Trump White House and CMS just rolled out their most ambitious health tech plan yet: a sweeping “Digital Health Tech Ecosystem” that promises to give patients control of their medical records and tear down the data silos that have plagued American healthcare for decades. 

More than 60 companies — including Amazon, Apple, Google, and OpenAI — have signed on to the voluntary interoperability framework, which was unveiled at a July 30 White House event dubbed “Make Health Tech Great Again.” 

The pitch is compelling: Imagine switching doctors and having your full medical history instantly available, or using AI-powered apps to manage diabetes while your data flows seamlessly between providers. CMS Administrator Dr. Mehmet Oz said the goal is putting patients in the driver’s seat of their own health information. 

What’s actually happening 

The initiative builds on nearly 1,400 public comments CMS received earlier this year. Here’s what companies are committing to: 

• 21 networks will meet new interoperability standards 

• 11 health systems signed up for data-sharing pilots 

• 30 companies will develop consumer health apps using secure digital credentials 

CMS plans to curate an app library on Medicare.gov, highlighting tools for chronic disease management and preventive care. The agency is also developing a national provider directory and exploring digital identity solutions to make the system work. 

If it pans out, those paper intake forms that make everyone miserable could finally disappear. 

The privacy problem 

But privacy advocates are sounding alarms. Many consumer health apps fall outside HIPAA protections, meaning your sensitive data could end up sold to advertisers or used in ways you never intended. 

The Center for Telehealth and eHealth Law warns that aggregating diverse health data points — from lab results to fitness tracker steps — could allow companies to infer highly sensitive information about patients. And connecting dozens of health systems increases cybersecurity risks, creating more opportunities for hackers to strike. 

What it means for the industry 

For health tech companies, this represents a massive opportunity — and a test of responsibility. Access to richer patient data could enable more personalized AI tools and remote monitoring, but companies that cut corners on privacy could face regulatory backlash and consumer rejection. 

Health systems that adapt quickly could gain competitive advantages through streamlined workflows and better patient experiences. Those that lag behind risk being outmaneuvered by more tech-savvy rivals. 

The timeline 

CMS expects the first networks to launch in early 2026. The coming year will bring pilot programs that reveal whether this ambitious vision can work in practice. 

The bigger question: Can the administration balance innovation with protection for vulnerable populations? The voluntary nature of the program and heavy reliance on private companies raises concerns that benefits could flow primarily to wealthy, tech-savvy patients while others bear disproportionate privacy risks.