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Trump Signs Executive Order Targeting Medicare Drug Prices and Industry Practices

The order seeks to lower costs for patients by reforming Medicare negotiations, expanding access to discounted medications, and fostering pharmaceutical competition.

Washington, DC - April 02 : Health and Human Services Secretary Robert F. Kennedy Jr., and Commerce Secretary Howard Lutnick listen as President Donald J Trump speaks before signing an executive orders on tariffs during a Make America Wealthy Again event in the Rose Garden at the White House on Wednesday, April 02, 2025 in Washington, DC. (Photo by Jabin Botsford/The Washington Post via Getty Images)
U.S. President Donald Trump arrives for a presentation of the Commander-in-Chief trophy to the U.S. Navy Midshipmen football team of the United States Naval Academy,  at the White House in Washington, D.C., U.S., April 15, 2025. REUTERS/Evelyn Hockstein
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Overview

  • President Trump’s executive order aims to address high prescription drug costs through Medicare reforms, including aligning payment rates with hospital acquisition costs, potentially reducing prices by up to 35%.
  • The order reinstates a program to provide low-income patients with insulin for as little as 3 cents per vial and epinephrine for $15, reviving a Trump-era initiative previously ended by the Biden administration.
  • It directs the FDA to streamline approvals for generic and biosimilar drugs and encourages states to import lower-cost medications from countries like Canada.
  • The administration proposes extending the timeline before small-molecule drugs become eligible for Medicare price negotiations, a move criticized as favoring pharmaceutical industry interests.
  • HHS, led by Robert F. Kennedy Jr., is tasked with collaborating with Congress to implement these reforms, while critics warn the changes could undermine earlier cost-saving achievements.