Prescription Drug Prices

[phkrause]

Trump Order Walks Back Biden-Era Effort To Lower Prescription Drug Prices. Here's Context

There are still other Biden-era measures in place to reduce prescription drug prices, however.

Claim:

On Jan. 20, 2025, U.S President Donald Trump rescinded an executive order signed by former President Joe Biden aimed at lowering prescription drug prices for patients on Medicare and Medicaid.

Rating:

Mostly True

What's True

Trump's reversal of Biden's order halted implementation of a program meant to lower drug costs for Medicare beneficiaries.

What's False

The program Trump is halting would not have affected Medicaid beneficiaries, who were not included in the cost-cutting program to begin with.

Context

Trump rescinded Executive Order 14087, "Lowering Prescription Drug Costs for Americans," which directed Medicare and Medicaid agencies to research and implement models for lowering the costs of prescription drugs. Separate provisions in the Inflation Reduction Act of 2022 also aimed at lower prescription drug costs are still in effect.

https://www.snopes.com/fact-check/trump-biden-prescription-drug-prices/?

[phkrause]

💊 Charted: Prescription price plunge

Data: Bureau of Labor Statistics. Chart: Courtenay Brown/Axios America is seeing its biggest prescription drug price deflation in generations, Axios Macro author Courtenay Brown reports. 📉 By the numbers: Prescription drug prices fell 0.8% in July and are down 3.1% from a year ago — the steepest annual decline in more than six decades, according to the latest Consumer Price Index. Prices haven't risen in any month this year, an unusually persistent stretch of flat or falling drug prices. The intrigue: Trump administration officials are taking a victory lap over the price drop, although TrumpRx — the administration's website connecting patients with discounted cash prices for certain drugs — likely accounts for only part of the decline. 💸 Another potential factor: Medicare negotiations established under President Biden's Inflation Reduction Act took effect in January for 10 of the program's costliest drugs, with negotiated prices as much as 79% below their list prices. White House senior deputy press secretary Kush Desai said IRA's negotiated prices failed to deliver meaningful savings beyond existing insurer discounts. 🥊 Reality check: Falling aggregate prices don't necessarily translate into relief for consumers, given the complexity of drug pricing and payments.