Lowering Drug Prices by Once Again Putting Americans First
Apr 18, 2025
Apr 18, 2025
Summary
Directs government agencies to find ways to lower drug prices by increasing competition, improving transparency, and changing Medicare and Medicaid rules.
What problem does this solve?
Americans pay much more for the same prescription drugs than people in other countries, and recent laws have not fixed the problem. This order directs government agencies to restart and create new programs to lower drug costs and increase competition.
Who does this affect?
- Seniors on Medicare
- Low-income individuals
- Pharmaceutical companies
What does this order do?
Makes life-saving drugs more affordable
Requires health centers that get government grants to provide insulin and injectable epinephrine to low-income people at or below the discounted price the center pays.
Improves the medicare drug price negotiation program
Directs the government to propose new guidance for the Medicare program that negotiates drug prices, aiming for more transparency and savings.
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Accelerating competition for high-cost prescription drugs
Speeds up approval of cheaper drugs
Orders a report on how to get generic and biosimilar drugs approved faster and make it easier to reclassify prescription drugs as over-the-counter.
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Increasing prescription drug importation to lower prices
Makes it easier to import drugs
Requires the government to improve the program that allows states to import drugs from other countries to lower prices for their citizens.
Creates a new payment model for expensive drugs
Tells the Secretary of Health and Human Services to create and test a new way for Medicare to pay for high-cost drugs to get better value.
Ends the 'pill penalty'
Asks Congress to change the Medicare drug negotiation program so that common pill-form drugs are treated the same as more complex biological drugs.
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Improving transparency into pharmacy benefit manager fee disclosure
Increases transparency of middlemen fees
Directs the Secretary of Labor to propose rules that would make pharmacy benefit managers (PBMs) reveal the direct and indirect fees they receive.
What is the real world impact?
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Lowers drug costs for patients
Aims to reduce out-of-pocket costs for Americans, especially seniors on Medicare and low-income individuals who need life-saving medicines like insulin.
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Increases competition in the drug market
Encourages faster approval of generic and over-the-counter drugs and makes it easier to import cheaper drugs from other countries, which can drive down prices.
When does this start?
This order sets multiple deadlines for government agencies to propose new rules and provide reports, beginning 60 days after April 15, 2025.
Guidance for Medicare drug price negotiation
Within 60 days, the Secretary of Health and Human Services must propose guidance for the Medicare Drug Price Negotiation Program.
Action on affordable insulin and epinephrine
Within 90 days, the Secretary must take action to make insulin and epinephrine available at a low cost to certain individuals.
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Increasing prescription drug importation to lower prices
Streamline drug importation
Within 90 days, the government must take steps to make it easier for states to import prescription drugs.
Recommendations to lower Medicare Part D premiums
Within 180 days, a report with recommendations on how to lower Medicare Part D premiums must be sent to the President.
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Accelerating competition for high-cost prescription drugs
Report on accelerating drug competition
Within 180 days, the Commissioner of Food and Drugs must issue a report with recommendations to speed up approval of generic and other drugs.
New payment model for high-cost drugs
Within 1 year, the Secretary must develop and implement a new payment model for high-cost drugs in Medicare.