President Donald Trump has taken a significant step to address rising health care costs by signing an executive order aimed at making prescription drugs more affordable. This action, announced on Tuesday, focuses on reducing inefficient government practices and fostering competition within the pharmaceutical industry.
The executive order outlines several measures designed to improve Medicare’s drug pricing system. One key goal is to ensure that Medicare pays the same prices that hospitals and other providers receive for medications. According to a White House official, hospitals often acquire drugs at prices much lower than what Medicare pays, sometimes as much as 35% less. The order will direct a survey to explore how to align Medicare payments with these lower acquisition costs.
Another major aspect of the order is the update to the Medicare drug price negotiation program. The administration aims to achieve a 22% savings in the program’s first year, surpassing the savings achieved during the Biden administration. The White House also plans to standardize Medicare payments for prescription drugs across different treatment settings, including cancer therapies.
In addition, the order instructs the Food and Drug Administration to streamline the approval process for generic drugs and to facilitate the importation of medications from countries like Canada. It also calls for a report on anti-competitive practices within the pharmaceutical industry.
A notable provision in the executive order revives a program from Trump’s first term that allows low-income individuals and those without health insurance to access insulin at significantly reduced prices. Under this program, insulin could cost as little as three cents per vial and $15 for injectable epinephrine. This initiative aims to ensure that discounts available through the 340b program are passed on to those who need it most.
The previous Biden administration had ended this program, arguing it could lead to higher prices for health care providers. However, with health care costs continuing to rise, Trump’s administration is seeking new ways to provide relief to American patients.
This executive order reflects Trump’s ongoing commitment to lowering prescription drug prices, a priority he highlighted throughout his first term. The administration believes that by increasing competition and revising existing programs, they can make a real difference in the affordability of medications for millions of Americans.