Overview

• President Trump rescinded Biden's executive order aimed at lowering prescription drug costs, creating uncertainty about future price reductions.
• Biden's order had initiated Medicare programs, including a $2 cap on certain generic drugs, which may now face discontinuation or revision.
• The Inflation Reduction Act's drug price negotiation provisions remain intact, with significant savings anticipated starting in 2026, unless altered by the new administration.
• Concerns arise over whether Trump's administration, including key appointees, will actively defend or implement the existing drug pricing law amid ongoing legal challenges.
• Experts highlight the potential for pharmaceutical companies to raise prices if regulatory measures promoting transparency and competition are weakened.