Executive Orders Signed to Reduce Drug Prices

1.5 minute read

President Trump recently signed four executive orders aimed at lowering drug prices. This topic has been a long-standing campaign promise of his administration. The executive orders focus on insulin prices, drug importation, drug rebates, and international pricing. Here’s an overview of the four orders:

• Executive Order on Lowering Prices for Patients by Eliminating Kickbacks to Middlemen
  Federally qualified health centers should pass along discounts on insulin and epinephrine received from drug companies to certain low-income Americans.
• Executive Order on Increasing Drug Importation to Lower Prices for American Patients
  Allow state plans for safe importation of certain drugs, reauthorize the re-importation of U.S. made insulin products, and start widespread use of personal importation waivers at authorized U.S. pharmacies.
• Executive Order on Access to Affordable Life-saving Medications
  Prohibits secret deals between pharmacy benefit manager middlemen and drug manufacturers. This would help ensure that patients directly benefit from pharmacy discounts.

The fourth order ensures that the United States will pay the lowest price available in economically comparable counties for all Medicare Part B drugs. The U.S. often pays 80% more for these drugs then other developed counties. Implementation of this order has been delayed until August 25, 2020.

The pharmacy industry has condemned the executive orders and will have the opportunity to respond directly to the president. They will discuss proposal alternatives to reduce costs and specifically the international pricing in the fourth executive order.

Download the bulletin for more details.