Your cart is currently empty!
Donald Trump’s Medicare Executive Order Explained
President Donald Trump has rescinded former President Joe Biden‘s executive order 14087, which was put in place to lower the cost of prescription drugs for Americans.
Newsweek has reached out to the Trump transition team outside of regular working hours via email for comment.
Why It Matters
Trump signed a flurry of executive orders and took a number of other presidential actions on Inauguration Day Monday as he fulfilled a campaign pledge to enact a sweeping conservative agenda upon his return to the White House.
JIM WATSON/POOL/AFP via Getty Images/Getty Images
What To Know
The key components of executive order 14087 implemented by Biden are as follows:
- Medicare $2 drug list model: This initiative sought to cap certain generic drug prices at $2 for Medicare beneficiaries, enhancing affordability.
- Cell and gene therapy access model: Designed to improve access to high-cost therapies for Medicaid recipients, this model aimed to negotiate pricing and facilitate coverage.
- Accelerating clinical evidence model: Focused on expediting the availability of effective treatments by streamlining the evidence-gathering process for new drugs.
In the executive order, signed in 2022 by Biden, the then-president said: “Too many Americans face challenges paying for prescription drugs. On average, Americans pay two to three times as much as people in other countries for prescription drugs, and one in four Americans who take prescription drugs struggle to afford their medications. Nearly three in 10 American adults who take prescription drugs say that they have skipped doses, cut pills in half or not filled prescriptions due to cost.”
The potential impact of rescinding executive order 14087 is as follows:
- Halted development of cost-reduction models: The directive for the Department of Health and Human Services to develop and test new models aimed at lowering drug costs through the Center for Medicare and Medicaid Innovation has been withdrawn. This move could slow or halt progress on initiatives that were designed to make prescription medications more affordable.
- Potential increase in out-of-pocket expenses: Without the implementation of new models focused on reducing costs, Medicare and Medicaid beneficiaries might continue to face high out-of-pocket expenses for prescription drugs, possibly affecting access to certain medications.
- Uncertainty in future drug pricing policies: The rescission creates uncertainty regarding the federal government’s approach to addressing prescription drug costs, which could leave beneficiaries unsure about future measures to control or reduce expenses.
What People Are Saying
President Donald Trump, in the executive order, said: “The previous administration has embedded deeply unpopular, inflationary, illegal and radical practices within every agency and office of the federal government.” He added: “The revocations within this order will be the first of many steps the United States federal government will take to repair our institutions and our economy.”
In response to Trump’s rolling back of the executive order, Democratic National Committee rapid response director Alex Floyd released the following statement: “Donald Trump is already following through on his dangerous plans to jack up the costs of drugs to appease his billionaire backers after the Biden-Harris administration took on Big Pharma and won. Trump is again proving that he lied to the American people and doesn’t care about lowering costs—only what’s best for himself and his ultra-rich friends.”
What Happens Next
While the executive order has been rescinded, existing laws and regulations governing prescription drug pricing and Medicare and Medicaid policies remain in effect. However, the measures from the previous administration that they say was designed to save on costs has now been disrupted.
Do you have a story Newsweek should be covering? Do you have any questions about this story? Contact LiveNews@newsweek.com
Donald Trump’s Medicare Executive Order Explained
Recently, President Donald Trump signed an executive order aimed at expanding Medicare coverage for seniors in the United States. The order, titled “Protecting and Improving Medicare for Our Nation’s Seniors,” seeks to increase access to telehealth services, lower prescription drug costs, and enhance the Medicare Advantage program.
One of the key provisions of the executive order is the expansion of telehealth services for Medicare beneficiaries. This will allow seniors to receive care from their healthcare providers remotely, reducing the need for in-person visits and potentially lowering healthcare costs. Additionally, the order aims to improve the quality of care for seniors by promoting value-based care models and encouraging healthcare providers to focus on patient outcomes rather than the volume of services provided.
Another important aspect of the executive order is the push to lower prescription drug costs for Medicare beneficiaries. The order calls for the creation of a new payment model that would tie the price of certain drugs covered by Medicare to the cost of those drugs in other countries, where prices are often lower. This could potentially save seniors money on their medications and reduce the overall cost of the Medicare program.
Lastly, the executive order seeks to strengthen the Medicare Advantage program, which allows seniors to receive their Medicare benefits through private insurance plans. The order aims to increase flexibility and choice for beneficiaries enrolled in Medicare Advantage, as well as improve the quality of care provided by these plans.
Overall, President Trump’s Medicare executive order represents an effort to enhance the Medicare program and improve healthcare access and affordability for seniors. While the full impact of the order remains to be seen, it signals a commitment to expanding healthcare options for America’s older population.
Tags:
- Donald Trump
- Medicare
- Executive Order
- Explanation
- Healthcare
- Policy
- United States
- Politics
- President
- Analysis
#Donald #Trumps #Medicare #Executive #Order #Explained
Leave a Reply