Quick summary
• President Donald Trump rescinded Executive Order 14087, which aimed to develop programs to lower prescription drug costs for Americans.
• The order had initiated pilot programs to reduce drug prices, including a $2 copay for certain generic drugs for Medicare Part D recipients.
• Trump’s rollback halts progress on cost-saving models explored under the Biden administration, such as outcomes-based agreements and value-based payment systems.
• The pharmaceutical lobby is reportedly pushing Trump’s administration to weaken price negotiation provisions in the Inflation Reduction Act.
• Critics argue Trump’s action prioritizes corporate interests over public health, with progressive groups warning it could increase drug costs for vulnerable populations.
• Key provisions from the Inflation Reduction Act, including capped out-of-pocket costs for Medicare beneficiaries, remain in place but face potential opposition.
• Advocacy groups like Social Security Works and the Democratic National Committee have condemned the rollback, emphasizing its harmful implications for affordability and accessibility of medications.
On his first day back in the White House, President Donald Trump rescinded a sweeping executive order issued by his predecessor, Joe Biden, aimed at reducing prescription drug prices in the United States. The rollback of Executive Order 14087, titled Lowering Prescription Drug Costs for Americans, signals a major shift in federal healthcare policy and could have far-reaching implications for millions of Americans who struggle with the high cost of medication.
The move, one of dozens of Biden-era policies Trump reversed on Monday, halts pilot programs launched by the Biden administration to explore innovative ways to reduce out-of-pocket costs for Medicare and Medicaid recipients. Critics argue that the rescission demonstrates a preference for protecting pharmaceutical industry interests over the needs of ordinary Americans.
President Biden’s Executive Order 14087 directed the Department of Health and Human Services (HHS) to develop new healthcare payment and delivery models that would lower prescription drug costs while promoting access to innovative therapies. Key proposals included:
• Allowing Medicare Part D sponsors to offer a standard set of high-value generic drugs with a maximum copay of $2 per month.
• Incentivizing pharmaceutical manufacturers to complete confirmatory clinical trials for drugs approved under accelerated pathways.
• Exploring multi-state agreements to negotiate discounts on high-cost specialty drugs.
Although these initiatives were still in their infancy, they represented significant steps toward addressing the United States’ disproportionately high prescription drug costs. The average American pays far more for medication than residents of other developed nations, a burden that weighs especially heavily on seniors and low-income families.
Trump’s executive action rescinded Biden’s order, describing it as one of many “unpopular, inflationary, illegal, and radical practices” inherited from the previous administration. This decision halts the exploration and implementation of Biden’s proposed cost-saving measures and effectively ends the ongoing pilot programs under the Centers for Medicare and Medicaid Innovation.
“This act is a good indication of how Trump will approach lower drug prices,” Social Security Works, a progressive advocacy group, commented on social media following the rescission.
The rescission of Executive Order 14087 raises questions about Trump’s plans for drug pricing policies. The Biden administration had laid the groundwork for Medicare to negotiate prices for certain high-cost drugs under the Inflation Reduction Act (IRA), a provision fiercely opposed by the pharmaceutical industry. Days before leaving office, Biden’s HHS announced the first 15 drugs selected for Medicare price negotiations, with price reductions set to take effect in 2026.
Trump has yet to address whether his administration will continue implementing the IRA’s price negotiation provisions. However, reports suggest that pharmaceutical lobbyists are urging his administration to weaken these rules, potentially reversing one of the most significant achievements of Biden’s healthcare agenda.
The decision to roll back Biden’s drug pricing order has drawn sharp criticism from progressive groups, healthcare advocates, and political figures.
“Donald Trump is already following through on his dangerous plans to jack up the costs of drugs to appease his billionaire backers after the Biden-Harris administration took on Big Pharma and won,” said Alex Floyd, rapid response director for the Democratic National Committee. “Trump is again proving that he lied to the American people and doesn’t care about lowering costs—only what’s best for himself and his ultra-rich friends.”
Maurice Mitchell, national director of the Working Families Party, condemned Trump’s rescission as part of a broader agenda to undermine public welfare programs. “Trump’s flood of executive orders is just a cheap spectacle meant to distract us while his administration moves to gut our healthcare and SNAP benefits,” he said. “Immigrant families aren’t the reason we can’t afford eggs or prescription drugs; billionaire CEOs are.”
The United States has long grappled with sky-high prescription drug costs. A recent report highlighted that the country spends more on medications per capita than any other high-income nation. Biden’s measures were intended to curb this trend, but Trump’s rollback risks undoing progress and exacerbating inequality in healthcare access.
While Biden’s policies aimed to provide immediate relief for Medicare beneficiaries, Trump’s rescission leaves the future of drug pricing reforms uncertain. For now, the IRA’s provisions to cap out-of-pocket drug costs at $2,000 annually for Medicare beneficiaries will remain in place, with full implementation expected by 2026.
To join the fight for affordable medicines for all, visit LowerDrugPrices.org.
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