President Trump Unveils Executive Order to Cut Drug Prices and Enhance Medicare Transparency

President Trump has introduced a comprehensive executive order targeted at reducing drug prices, enhancing transparency on fees by intermediaries, and curtailing Medicare payments for outpatient services at hospitals.

This initiative, requiring further rulemaking for implementation, builds upon the Medicare drug price negotiation program established by the Inflation Reduction Act of 2022. Despite the commendable goals of this program, challenges in administrative processes have stifled its progress in achieving notable cost savings.

The executive order seeks to expand drug price negotiations, a move intended to further curb healthcare expenses for Medicare beneficiaries, particularly seniors and those with disabilities. This development underscores a continuation and an attempt to enhance the policies initiated under former President Biden, aligning with ongoing efforts to manage healthcare costs through regulatory modifications.