Lower Drug Prices Ahead? Key Takeaways from Trump’s Latest Order
Executive Action Alert
President Trump Issues Executive Order: “Lowering Drug Prices by Once Again Putting Americans First”
On April 15, President Trump signed a sweeping Executive Order aimed at reshaping the pharmaceutical landscape by prioritizing affordability, transparency, and access. The order outlines a series of reforms that span importation, Medicare payments, PBMs, and more.
Key Provisions of the Executive Order |
90-Day Directives
Drug Importation: FDA directed to streamline and improve processes for states to import lower-cost prescription drugs.
PBM Reform Framework: Domestic Policy Council to present strategies to reform PBMs and enhance transparency across the pharmaceutical value chain.
340B Pricing Requirements: HHS must ensure new community health center grants require centers to offer insulin and epinephrine at or below 340B pricing.
180-Day Directives
Accelerating Approvals: FDA to provide recommendations to expedite generics, biosimilars, and the transition of drugs to over-the-counter status.
Medicare Payment Reform: HHS to propose regulations discouraging unnecessary shifts from physician offices to hospital outpatient settings.
Medicaid Rebate Accuracy: OMB and HHS to ensure manufacturers pay accurate rebates under Medicaid.
Inflation Reduction Act Enhancements: HHS to improve IRA transparency, target high-cost drugs for Medicare, and safeguard pharmaceutical innovation.
Medicare Part D Premium Stability: Domestic Policy Council to recommend actions to stabilize premiums.
PBM Compensation Transparency: Department of Labor to propose rules increasing visibility into direct and indirect PBM compensation.
Why This Matters?
These reforms, if implemented effectively, could:
- Lower out-of-pocket costs for patients.
- Increase access to life-saving medications.
- Improve competition and reduce inefficiencies in the pharmaceutical supply chain.
Stay Informed
We’ll continue monitoring updates and providing insights as these directives develop. Want tailored guidance for your organization?
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