DateIssued:April15,2025
Topic:Health
WHATDOESTHISEXECUTIVEORDERDO?
ThisexecutiveorderdirectstheSecretaryofHealthandHumanServices (HHS)toevaluateseveralMedicareandFoodandDrugAdministration (FDA)processesinordertolowerdrugpricesforAmericanconsumers.
TheordercontinuestheMedicareDrugPriceNegotiationProgram establishedbytheBiden-HarrisAdministrationintheInflationReduction ActandexpandstheofferingstoincludeGLP-1slikeOzempic.
Theorderalsoseekstoalignwhenprescriptionpillsandbiologicsor infusionsareeligibleforapricereductionunderMedicare.
HOWWILLTHISEXECUTIVEORDERBEENFORCED?
ThisexecutiveorderwillprimarilybeenforcedbytheSecretaryofHHS.The Secretaryistaskedwithconductingasurveyonthecostofoutpatient medicationsinhospitalsettingswithinsixmonthsoftheorder’s publicationandaligningtheportionsofMedicarethatcoverprescription drugswiththosestandards.Inaddition,theSecretarywillholdlistening sessionswithrepresentativesfromtheDepartmentofJustice,the DepartmentofCommerce,andtheFederalTradeCommissionand recommendpoliciestoaddress“anti-competitivebehaviorfrom pharmaceuticalmanufacturers.”
TheorderdirectstheSecretary,alongwiththeDirectoroftheOfficeof ManagementandBudget,andtheAssistantstothePresidentfor EconomicandDomesticPolicy,tomakerecommendationstoimprovethe overallsupplychainforpharmaceuticalsandholdmanufacturers accountableforpayingMedicarerebatesnolaterthanthreemonthsafter theorderwasissued.
TheorderalsoinstructstheSecretaryofHHStoremedyaloopholewhich allowsMedicarebeneficiariestohavehigherco-paysforcareathospitalownedclinicsthanotherhealthcaresettings.
TheorderinstructstheFDAtostreamlinetheprocessforstatestoapplyto importlower-costdrugsfromCanadaandothercountries.
TheordergivestheSecretaryofHHS90daystoadjustfederalgrant requirementstomandatethatcommunityhealthcentersprovidefreeor low-costinsulinandepinephrinetouninsuredorlow-incomepatients.
TheorderinstructstheSecretaryofHHStorecommendwaysto streamlinetheapprovalofgenericdrugsandbiosimilars,whicharesold atreducedprices,aswellastheprocessthroughwhichtheycanbe safelysoldoverthecounteratlowerrates.
HOWDOESTHISIMPACTBLACKCOMMUNITIES?
ByextendingtheMedicareDrugPriceNegotiationProgram,thisexecutive orderwillcontinuetoreduceprescriptioncostsforthe5.8millionBlack Medicarebeneficiaries.BlackAmericansaredisproportionatelyimpacted bychronicdiseasesandhavehigherincidenceandfatalityratesof diabetesandcardiovasculardiseasethanwhiteAmericans.NearlytwothirdsofAmericanswithhypertensionanddiabetesreportcost-related nonadherence,meaningtheyskippedorreducedmedicaldosagesdue toissuesofaffordability.Thisorderwilllowerthecostofseveralpopular chronicdiseasetreatmentsforseniors,whichcouldhelpaddressthe disparitiesinlifeexpectancyforBlackandwhiteAmericans.
However,someprovisionsinthisorderconflictwithotherWhiteHouse policiesorcouldexacerbatechallengesforthehealthcaresystem.In March2025,PresidentTrumpproposedtariffsthatwouldincreasethe costofimportinggoodsfromCanada.TheimpositionofCanadiantariffs complicatesenforcementoftheorder’sprovisionthataimstomakeit easierforstatestoimportdrugsfromabroad.Theaddedtariffsarelikely todriveupcosts,underminingtheorder’sintendedbenefits.
Theorderalsoinstructscommunityhealthclinicstoprovideinsulinand epinephrineatmoreaffordableratesbutdoesnotstipulatethe disbursementoffundstosubsidizethespecificdifferenceincost.When PresidentTrumpattemptedtoimplementasimilarpolicyin2020,it createdanadditionalburdenfortheclinics.Withtherecentbudgetcuts totheCentersforDiseaseControlandPreventionandotherhealth agencies,communityhealthclinicshavefewergrantopportunitiesto supplementtheirbudgets.Asaresult,clinicscouldbeforcedtoshut down,reducingoverallaccesstocare.BecauseBlackAmericanshave higheruninsuredratesthanwhiteAmericans,andarelesslikelytolivein proximitytoprimarycarephysicians,communityhealthcentersare crucialsitesofcareforBlackcommunities.Ifthisorderjeopardizestheir funding,Blackcommunitieswillbeleftwithoutanimportantavenuefor care.
MembersoftheCongressionalBlackCaucus(CBC)areamongthe strongestadvocatesofaffordabledrugpricing.
InApril2025,Rep.StevenHorsfordintroducedtwobillstolower prescriptiondrugprices.Inhisremarks,heoutlinedtheimportanceof thegovernmentsteppingintotoensurethateveryAmericancan accesstheprescriptionstheyneed:“Nofamilyshouldhavetochoose betweenputtingfoodonthetableandaffordinglifesaving medication.Thesebillstakeacriticalsteptowardmakingprescription drugsmoreaffordableandaccessibleforall.Theybuildonthe progresswe’vemadetolowercostsandensurethatnoNevadanmust sacrificetheirhealthtomakeendsmeet.”FullStatement
AftertheTrumpAdministrationannouncedsweepingtariffs,Sen. RaphaelWarnockco-wrotealettertoPresidentTrumpvoicinghis concernsabouttheirimpactonprescriptiondrugprices:“Weare concernedthatthetariffsyouhaveproposedonourtradepartners willimpactprescriptiondrugs,drivinguppricesforAmericans, exacerbatingsupplychainissues,andhurtingdomestic pharmaceuticalmanufacturers.Steeptariffsonourclosesttrade partnersonlyfurtherincreasethecostofprescriptiondrugsforboth consumersandmanufacturersandwillleadtodrugshortages.[...] Americanscannotaffordtocontinueemptyingtheirpocketsjustto refilltheirprescriptionsatthepharmacy.”FullStatement