This EO aims to reverse the Biden administration’s prescription drug policies and restore previous efforts to lower drug prices. It directs the Secretary of Health and Human Services to refine the Medicare Drug Price Negotiation Program to enhance transparency, prioritize high-cost drugs, and mitigate negative impacts on innovation, particularly discussing the “pill penalty” on small molecule drugs. The order also seeks to stabilize Medicare Part D premiums, test new payment models for high-cost drugs, and improve the accounting of drug acquisition costs in Medicare. HHS will conduct a survey to determine hospital acquisition costs for outpatient drugs and consider adjustments to Medicare payments based on the results. It also directs the FDA to expedite approval for generics and biosimilars and streamline drug importation processes. Lastly, the order addresses anti-competitive practices by pharmaceutical manufacturers and seeks recommendations to promote a more competitive and transparent pharmaceutical supply chain by reevaluating the role of middlemen like Pharmacy Benefit Managers (PBMs).

View the EO here.