In a recent executive order, former U.S. President Donald Trump outlined various strategies aimed at lowering prescription drug prices in the United States. The order reflects upon the actions taken during his previous term to cut costs for American patients and critiques the current administration's handling of similar efforts.
"My first term included numerous significant actions, including some of the most aggressive in recent history, to deliver lower prescription drug prices to American patients," states Trump. He emphasizes the administration's past achievements in promoting the development of generic and biosimilar drugs, expanding access to lower-cost drugs through imports, and initiating healthcare reforms to pass discounts directly to patients.
Trump critiques the current administration's approach, asserting that "the Biden Administration reversed, walked back, or neglected many of these initiatives, undoing the progress made for American patients." He also questions the effectiveness of the Medicare Prescription Drug Negotiation Program under the Inflation Reduction Act, arguing it has resulted in lower than expected savings and increased costs for seniors' insurance plans.
According to the order, it is the policy of the United States to optimize federal healthcare programs to ensure access to affordable prescription drugs. Trump proposes several actions including improving drug price negotiation guidance, stabilizing Medicare Part D premiums, and aligning cost treatment for both small molecule drugs and biological products to avoid market distortions.
Additionally, the order calls for a rulemaking plan to better secure value for high-cost drugs, measures to ensure drug rebate accuracy in Medicaid, and initiatives to streamline drug importation and approvals for generics and over-the-counter reclassifications. Trump urges a reevaluation of the role of intermediaries in the pharmaceutical industry to foster a more transparent and competitive environment.
He also stresses the importance of accelerating competition in the prescription drug market to benefit American consumers. "Within 180 days of the date of this order... administrative and legislative recommendations [are to be issued to] accelerate approval of generics, biosimilars, combination products, and second-in-class brand name medications."
The executive order concludes with directives to improve transparency of pharmacy benefit manager fees and to tackle anti-competitive behaviors by drug manufacturers, with input from the Department of Justice, the Department of Commerce, and the Federal Trade Commission.
Lastly, Trump calls for actions within federal health policy frameworks to maintain legal compliance and budget availability, ensuring that these initiatives abide by existing laws and operating constraints.
