A former orthopaedic surgeon, 62-year-old Price is currently chairman of the House Budget Committee.
"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," Trump said.
"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," said the president-elect.
If confirmed by the Senate, Price would play a key role in Republican efforts to repeal and replace Obamacare.
Also, Indian-American Seema Verma was picked to become administrator of the Centers for Medicare and Medicaid Services.
Price said he is 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.
"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," Price said.
First elected to the US House of Representative in November 2004, Price previously served four terms in the Georgia State Senate as Minority Whip.
In 2002, he was a leader in the Republican renaissance in Georgia as the party took control of the State Senate, with Price rising to become the first Republican Senate Majority Leader in the history of Georgia.
In Congress, Price is a proven leader, tireless problem solver and go-to Republican on quality healthcare policy, the Trump Transition Team said in a statement.
He also serves on the House Committee on Ways and Means.
In the 114th Congress, Price was named Chair of the House Committee on the Budget.
In previous Congresses, he has served as Chairman of the House Republican Policy Committee and Chairman of the Republican Study Committee.
Committed to advancing positive solutions under principled leadership, Price has been a fierce opponent of government waste and devoted to limited government and lower spending.
For nearly 20 years, Price worked in private practice as an orthopaedic surgeon.
Before coming to Washington he returned to Emory University School of Medicine as an Assistant Professor and Medical Director of the Orthopaedic Clinic at Grady Memorial Hospital in Atlanta, teaching resident doctors in training.