The rule, set to go into effect in 2022, bans surprise billing for emergency services, high out-of-network cost-sharing, out-of-network charges for ancillary care at an in-network facility, and other out-of-network charges without advance notice.
"No patient should forgo care for fear of surprise billing," HHS Secretary Xavier Becerra said in a statement. "Health insurance should offer patients peace of mind that they won't be saddled with unexpected costs."
The Department of Health and Human Services said on Thursday that the policy was the first in an expected series of regulations "aimed at shielding patients from increased financial hardships stemming from surprise medical bills."
The measure is part of the bipartisan legislation Congress passed in December under Trump, who signed it into law.
The administration pointed to data showing that two-thirds of all bankruptcies filed in the U.S. are tied to medical expenses.
The former president spoke regularly about his desire to combat surprise medical bills, which can happen in emergency and non-emergency situations when patients visit (or are seen by) out-of-network providers. It is largely considered one of the rare initiatives that has widespread bipartisan support.