Trump Scraps Biden’s Plan to Cut Drug Prices, Shocks Healthcare Industry

On his first day back in the Oval Office for a second term, President Donald Trump canceled a directive put in place by former President Joe Biden that was designed to help create programs aimed at reducing the high costs of prescription drugs in the U.S., where citizens often pay significantly more for their medications compared to other developed nations.

The news of Trump revoking Executive Order 14087, also known as Lowering Prescription Drug Costs for Americans, came amid a wave of other executive reversals that he enacted soon after taking the oath of office.

This move effectively puts an end to various pilot projects that were being tested by the Center for Medicare and Medicaid Innovation. One notable initiative included a trial to provide generic drugs to Medicare Part D holders for a mere $2 copayment.

Responding to the repeal, Social Security Works, a left-leaning advocacy organization, expressed their view, stating, “This action clearly signals Trump’s approach to handling drug prices this term.”

KFF’s executive vice president for health policy, Larry Levitt, commented on the situation by highlighting a lingering uncertainty: “The real issue now is whether Trump will tackle the government’s role in negotiating drug prices under the Inflation Reduction Act.”

In the days leading up to Trump’s inauguration, the Biden administration had just announced plans to start direct price negotiations for 15 drugs between the government and drug manufacturers, a move that faced legal challenges from the pharmaceutical industry, all of which have been unsuccessful so far.

Reuters last week reported that the influential pharmaceutical lobby has been urging Trump’s advisors to seek amendments to the Inflation Reduction Act that would dilute its drug price negotiation features.

Alex Floyd, the rapid response director for the Democratic National Committee, criticized Trump’s actions, saying, “Donald Trump is making good on his perilous promise to increase drug prices to satisfy his billionaire donors, after the Biden-Harris administration took on Big Pharma and prevailed. Once again, Trump is showing that he never cared about reducing costs, focusing only on what benefits him and his affluent circle.”

The broad set of actions taken by Trump on his first day, which also targeted immigration and environmental policies, prompted Maurice Mitchell, national director of the Working Families Party, to speak out on Tuesday. He described the slew of executive orders as “a mere distraction orchestrated to divert attention while his administration works to dismantle our healthcare and SNAP benefits.”

Mitchell further pointed out, “It’s not immigrant families to blame for the soaring costs of essentials like eggs or prescription medications; it’s the billionaire CEOs.”