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American Focus > Blog > Health and Wellness > Trump executive order targets health care costs, drug prices
Health and Wellness

Trump executive order targets health care costs, drug prices

Last updated: April 15, 2025 9:13 pm
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Trump executive order targets health care costs, drug prices
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President Trump has recently unveiled a comprehensive executive order aimed at reducing drug prices, increasing transparency regarding fees charged by middlemen, and limiting Medicare payments for outpatient services provided by hospitals. The order, however, will require further rulemaking and actions to fully take effect.

One of the key initiatives included in the executive order focuses on Medicare drug price negotiation. This initiative is designed to lower healthcare costs for older adults and individuals with disabilities who rely on Medicare. Building upon a program initiated by former President Biden, the order seeks to expand Medicare drug price negotiation efforts. The program was established under the Inflation Reduction Act, a 2022 law that combined healthcare reform with energy initiatives. While the program’s goal was deemed commendable, Trump’s order highlighted administrative complexities that have hindered its ability to achieve significant savings.

The executive order also aims to enhance transparency in the healthcare industry, particularly regarding the fees charged by middlemen. By shedding light on these fees, the order seeks to empower patients with a better understanding of the costs associated with their care.

Furthermore, the order includes provisions to limit Medicare payments for outpatient services provided by hospitals. This measure is intended to reduce costs and ensure that Medicare funds are used efficiently.

It is important to note that the executive order will require additional steps to be fully implemented. Further rulemaking and actions will be necessary to bring about the intended changes outlined in the order.

Overall, President Trump’s executive order on lowering drug prices and improving healthcare transparency represents a significant step towards addressing the rising costs of healthcare in the United States. By focusing on Medicare drug price negotiation, enhancing transparency, and limiting Medicare payments for outpatient services, the order aims to make healthcare more affordable and accessible for all Americans.

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