President Donald J. Trump signed an Executive Order aimed at slashing prescription drug costs—with insulin reduced to three cents for low-income Americans.
The details: Trump’s order takes aim at drug costs and Big Pharma from several angles:
- Insulin: Prices drop to as low as three cents for low-income and uninsured patients.
- Epinephrine: Injectable doses fall to $15.
- Cancer drugs: Standardizing Medicare payments for prescription drugs, like cancer treatments, which can lower prices by 60 percent.
- Generics: Boosted access to biosimilars, which can be up to 80 percent cheaper.
- Middlemen: Order demands transparency from pharmacy benefit managers and pushes reforms to the entire supply chain.
- Drug importation: States can import lower-cost meds, including for sickle cell.
Back up: In 2020, Trump launched a program to give seniors access to $35 per 30-day supply of insulin. Biden let the program expire and then rolled it into the 2022 Inflation Reduction Act (IRA) and took credit for it.
Eclipsing Biden: The IRA also created the Medicare Drug Pricing Negotiation Program, which allowed Medicare to negotiate drug prices directly with pharma companies for high-cost prescription drugs.
- In its first year in effect under Biden, the program netted a 22 percent reduction in prices. Trump’s order aims to “eclipse” that number.
Big picture: Roughly 68 million Americans are enrolled in Medicare—meaning these reforms will touch roughly 20 percent of the U.S. population.