Trump aims to tackle soaring Medicare prescription drug prices in new executive order
President Donald Trump took a significant step in addressing the issue of soaring prescription drug prices by signing a new executive order on Tuesday. The order, which was signed by the Department of Health and Human Services (DHS) led by Robert F. Kennedy Jr., aims to standardize Medicare payments for prescription drugs, including those used for cancer patients, regardless of where a patient receives treatment. This move could potentially reduce prices for patients by up to 60%, according to a White House fact sheet.
In addition to standardizing Medicare payments, the executive order also calls for matching Medicare payments for certain prescription drugs to the prices that hospitals pay for those drugs. This could result in savings of up to 35% compared to what the government currently pays for those medications. The order also includes measures to lower insulin prices for low-income patients or those without insurance to as little as three cents, and injectable epinephrine for allergic reactions to as low as $15, along with a small administrative fee.
Furthermore, the order seeks to drive down drug prices at the state level by facilitating importation programs that could save states millions in prescription drug costs. It also aims to strengthen programs that help states secure deals on sickle-cell medications through Medicaid. The order also mandates the DHS to seek comments on the Medicare Drug Price Negotiation Program, which allows Medicare to directly negotiate prescription prices with drug companies.
The rising cost of prescription drugs has been a growing concern. Between January 2022 and January 2023, prescription drug prices increased by over 15%, reaching an average of $590 per drug product. Nearly half of the price increases exceeded the rate of inflation. Previous efforts by the Trump administration included capping Medicaid prescription drug plans for insulin at $35.
Trump’s tariffs on Chinese imports could further exacerbate healthcare costs, with experts predicting that medical treatments and drug prices could rise as a result. Trump hinted at potential tariffs on pharmaceuticals as well, citing the lack of domestic drug manufacturing.
The executive order signed on Tuesday is part of a series of actions taken by the Trump administration, including measures to prevent illegal immigrants from accessing Social Security benefits and investigating the impact of imported processed minerals on national security. This executive order follows a recent announcement by the Centers for Medicare and Medicaid Services to cease funding for nonmedical services under Medicaid.
Overall, President Trump’s efforts to combat rising prescription drug prices are aimed at providing relief to patients and ensuring greater transparency and affordability in the healthcare system.
This article was written by Diana Stancy, a politics reporter with Fox News Digital covering the White House.
