Trump Reverses Biden's Executive Order on Prescription Drug Prices
In a move signaling a divergence from the previous administration, President Donald Trump has revoked an executive order aimed at reducing prescription drug prices. This action includes scrapping a proposed initiative to provide Medicare patients with access to generic drugs for $2 per prescription.
Background
In late 2022, the Biden administration issued an executive order directing federal healthcare regulators to develop payment models for Medicare and Medicaid to lower prescription costs. One proposal from the Center for Medicare and Medicaid Innovation (CMMI) was to offer a standardized list of generic drugs with a $2 copay for Medicare patients.
Trump's Decision
Trump's rescission of the executive order effectively cancels the $2 generic drug list, along with other proposals put forth by CMMI. The initiative was in the planning stages, so its demise has no immediate impact on seniors' wallets.
Industry Reactions
Healthcare experts have expressed mixed reactions to Trump's move. Some see it as a symbolic rejection of efforts to reduce drug spending, while right-leaning experts argue the $2 generics list would have added unnecessary bureaucracy with minimal savings.
Policy Implications
Trump's decision indicates a desire to break with the Biden administration's approach to Medicare drug pricing. The move has sparked questions about the extent to which Trump will pursue aggressive negotiations with pharmaceutical companies on upcoming bargaining rounds.
Ongoing Negotiations
Despite the executive order reversal, Medicare's authority to negotiate drug prices with manufacturers remains in effect, as it was established by federal law. The Biden administration released a list of 15 drugs that the government will seek to negotiate over, including the diabetes medication Ozempic. The negotiations will have significant implications for the federal budget.
Conclusion
Trump's reversal of Biden's executive order on prescription drug prices signals a divergence in policy approaches to addressing rising drug costs. While the immediate impact is limited, the move could shape the future of Medicare's efforts to negotiate lower prices for prescription medications.