President Trump Signs Executive Order Delaying Medicare Drug Price Negotiations

On February 25, 2025, President Donald Trump signed an executive order titled "Lowering Drug Prices by Once Again Putting Americans First." This order, reportedly influenced heavily by pharmaceutical lobbyist pressures, seeks to defer Medicare drug price negotiations for small-molecule prescription drugs by an additional four years. These drugs, representing a major share of the medication market, were previously scheduled to enter price negotiations under provisions set by the Inflation Reduction Act after nine years of FDA approval. Critics argue that this decision will boost drug prices for consumers and taxpayers while benefiting pharmaceutical companies, contradicting the order's title.

Steve Knievel, an advocate with Public Citizen, expressed concerns that this extension could reverse progress made on drug affordability and emphasized the lack of significant legislative measures over the past four decades addressing industry price gouging. Groups like Protect Our Care have denounced the order, asserting that it serves the interests of Big Pharma at the expense of the public. Meanwhile, industry-supported groups continue their opposition to broader Medicare price negotiation efforts, showcasing a continuing battle over drug pricing in the United States.