The Georgia congressman and orthopaedic surgeon, 62, chairs the budget committee in the House of Representatives.
He would play a central role in Republican plans to replace the Affordable Healthcare Act.
In his campaign, Mr Trump vowed to repeal and replace the act, considered President Obama’s flagship measure.
It came at the beginning of a day that vice-president-elect Mike Pence told reporters would produce “a number of very important announcements” concerning the presidential transition.
Representative Tom Price last week at Trump Tower in Manhattan. As secretary of health and human services, Mr. Price would be responsible for a department with an annual budget of more than $1 trillion.
In addition, Indiana health policy consultant Seema Verma was chosen to become administrator of the Centers for Medicare and Medicaid Services.
“Chairman Price, a renowned physician, has earned a reputation for being a tireless problem solver and the go-to expert on healthcare policy, making him the ideal choice to serve in this capacity,” said Trump in a statement. “He is exceptionally qualified to shepherd our commitment to repeal and replace Obamacare and bring affordable and accessible healthcare to every American. I am proud to nominate him as secretary of health and human services.”
Price said he was “humbled by the incredible challenges that lay ahead and enthusiastic for the opportunity to be a part of solving them on behalf of the American people”.
He added: “There is much work to be done to ensure we have a healthcare system that works for patients, families, and doctors; that leads the world in the cure and prevention of illness; and that is based on sensible rules to protect the well-being of the country while embracing its innovative spirit.”
Mr. Price’s intimate knowledge of Medicare could serve him well. The secretary of health and human services sets Medicare payment policies for doctors, updates the physician fee schedule each year and issues rules that can have a huge influence on the practice of medicine. The government is carrying out a law that changes how doctors are paid under Medicare, and Medicare often serves as a model for private insurers.
rice will arrive with at HHS with a clear blueprint for what comes next. He is the author of the Empowering Patients First Act, one of the most thorough and detailed proposals to repeal and replace Obamacare. He’s the HHS secretary you’d pick if you were dead serious about dismantling the law.
Price also participated in one of the last joint appearances of Donald Trump and VP-Elect Mike Pence in the days before Election Day to tout the now President-Elect’s healthcare policies.