Home Trump ends directive aimed at lowering prescription drug costs for people on Medicare, Medicaid
U.S. & World News

Trump ends directive aimed at lowering prescription drug costs for people on Medicare, Medicaid

Crystal Graham
prescription drug cost pharmacy
(© sommersby – Generated with AI – stock.adobe.com)

An executive order designed to lower the cost of prescription drugs for people on Medicare and Medicaid was one of more than 75 measures rescinded by President Donald Trump on Monday.

The revocation of the order raises serious concerns among Americans over future costs of drugs and accessibility.

Executive Order 14087—Lowering Prescription Drug Costs for Americans” was signed by former President Joe Biden on Oct. 14, 2022.

“Too many Americans face challenges paying for prescription drugs,” Biden said in the executive order. “On average, Americans pay two to three times as much as people in other countries for prescription drugs, and one in four Americans who take prescription drugs struggle to afford their medications. Nearly three in 10 American adults who take prescription drugs say that they have skipped doses, cut pills in half or not filled prescriptions due to cost.”

The executive order was one of 78 items, executive orders and memorandums, reversed by Trump in his return to the White House.

“The previous administration has embedded deeply unpopular, inflationary, illegal and radical practices within every agency and office of the federal government,” the order signed by Trump reads.

“To commence the policies that will make our nation united, fair, safe and prosperous again, it is the policy of the United States to restore common sense to the federal government and unleash the potential of the American citizen. The revocations within this order will be the first of many steps the United States federal government will take to repair our institutions and our economy.”

The Democratic National Committee was quick to issue a response.

“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, DNC Rapid Response director.

During Trump’s campaign for president he told CNBC that “there is a lot you can do in terms of entitlements, in terms of cutting” including Social Security, Medicare and Medicaid.

In his previous administration, Trump proposed cuts to Medicare and Medicaid in his budget. In his 2021 budget, Trump proposed tighter eligibility rules for long-term care services, potentially saving $34 billion, but putting care out of reach for many Americans.

Executive Order 14087 had three goals:

  • Medicare $2 Drug List Model: Allowed Part D plan sponsors to offer a low, fixed (up to $2 per month supply) copayment across all cost-sharing phases of the Part D drug benefit (up to the out-of-pocket limit) for a standard Medicare-defined list of generics.
  • Cell and Gene Therapy Access Model: Established a multi-state approach for pursuing and administering outcomes-based agreements in Medicaid, model would allow price negotiation and cover facilitation
  • Accelerating Clinical Evidence Model: Medicare Part B payment adjustments to providers for drugs approved via the AAP Program as a potential method to encourage the expeditious completion of manufacturer confirmatory trials.

By rescinding the executive order, it ends the directive for the Department of Health and Human Services to develop and test new models to lower drug costs. The move may also slow progress on making prescription medications more affordable.

Trump has also threatened to repeal the Affordable Care Act which would likely lead to coverage gaps in Medicare and reintroduce co-payments for preventive services.

“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,” Floyd said.

Crystal Graham

Crystal Graham

Crystal Abbe Graham is the regional editor of Augusta Free Press. A 1999 graduate of Virginia Tech, she has worked for 25 years as a reporter and editor for several Virginia publications, written a book, and garnered more than a dozen Virginia Press Association awards for writing and graphic design. She was the co-host of "Viewpoints," a weekly TV news show, and co-host of Virginia Tonight, a nightly TV news show on PBS. Her work on "Virginia Tonight" earned her a national Telly award for excellence in television.