REDUCING PRESCRIPTION DRUG COSTS: Today, President Donald J. Trump took a significant step by signing an Executive Order aimed at building on the groundbreaking initiatives from his first term to lower the cost of prescription medications for Americans.
- This Order mandates the Department of Health and Human Services to implement measures that will substantially decrease drug prices for patients across the nation.
- It specifically targets reductions in drug prices for Medicare recipients and the seniors who depend on it by:
- Enhancing the Medicare Drug Pricing Negotiation Program, aiming to exceed the initial 22% savings achieved in its inaugural year.
- Aligning Medicare payments for certain prescription drugs with the actual acquisition costs incurred by hospitals, which can be as much as 35% lower than current government payments.
- Standardizing Medicare payments for critical medications, such as cancer treatments, to ensure consistent pricing regardless of the care setting, potentially reducing costs by up to 60%.
- The Order also promises significant discounts for low-income patients needing life-saving medications.
- For low-income and uninsured patients, the price of insulin could drop to as low as $0.03, plus a minimal administrative fee.
- Injectable epinephrine for the same demographic may be offered at a price point of as low as $15, plus a small administrative fee.
- Moreover, the Order aids states in lowering drug costs by:
- Facilitating drug importation initiatives that could save states millions in prescription expenditures.
- Enhancing programs aimed at securing better deals on costly sickle-cell medications within Medicaid, surpassing the legally mandated 23.1% discount.
ENSURING TRANSPARENCY AND COMPETITION IN PRESCRIPTION DRUG MARKETS: President Trump is committed to establishing a transparent, competitive, and equitable prescription drug market for American consumers.
- He has already initiated numerous actions to dismantle the opacity that allows large corporations to profit by hiding healthcare prices and operational practices from the American public.
- The Order will increase the availability of generic drugs and biosimilars, which can be up to 80% cheaper than their brand-name counterparts.
- This initiative will build on previous efforts and reassess the role of intermediaries in the pharmaceutical market by:
- Enhancing the transparency of fees that pharmaceutical benefit managers (PBMs) pay brokers for directing employers to utilize their services.
- Instructing the administration to develop reforms aimed at creating a more competitive, transparent, and efficient prescription drug value chain.
- By confronting the influence of intermediaries and fostering open competition, the President’s endeavors seek to forge a fairer prescription drug market, thereby reducing costs and ensuring accountability throughout the healthcare system.
PUTTING AMERICAN PATIENTS FIRST ONCE AGAIN: President Trump is reaffirming his commitment to prioritize American patients by continuing the momentum from his first term in lowering prescription drug prices.
- During his first term, President Trump enacted various measures that yielded tangible benefits for patients:
- The Food and Drug Administration expedited the development of affordable generic medicines and biosimilars, while also creating pathways for states to import lower-cost drugs from Canada.
- Government-mandated discounts were passed directly to patients instead of being retained by intermediaries.
- Price transparency regulations were introduced, allowing patients, doctors, and employers to see the actual costs of prescription medications.
- Copays for insulin were capped for Medicare beneficiaries.
- In contrast, the Biden-Harris Administration has allowed many of these priorities to stagnate, failing to achieve projected savings from the new Medicare Prescription Drug Negotiation Program.
- President Trump is determined to combat this inaction, with his Administration rapidly working to lower prescription drug costs for all Americans.
