By Paul Waldmiller
Did you know this past week President Trump signed four executive orders regarding prescription drug costs?
During the 2016 presidential campaign, he promised that as President he would reduce prices of prescription medications. The orders that he signed last week implement the ending of “global Freeloading” on American innovation through lower pharmaceutical prices and eliminate rebates that pharmaceutical companies pay to Medicare Part D plans.
According to some pundits, the four executive orders signed by Trump are not immediately enforceable. There are reportedly also no specific ways on how to implement the proposals — namely, guidelines for individual states to implement the executive orders. A third executive order will encourage importation of cheaper medicines by states, pharmacies and wholesalers. The language in this order is not specific as to where drugs should be imported, nor does it address the overwhelming number of medications that are being imported from China which has become increasingly hostile against the U.S.
The fourth order directs clinics that qualify for large pharmaceutical discounts under a government program for low income patients to pass savings specifically on diabetic medications including insulin and EpiPens. According to one report regarding Trump’s 4th EO, the cost savings will “only apply to about 1,000 community health centers, not to hospitals that are frequently flagged as diverting the discounts away from patients toward other programs.”
Tricia Neuman, a Medicare expert with the Kaiser Family Foundation, was quoted as stating, “It’s not clear why the administration hasn’t made a bigger push to line up votes to get a bill through the Senate and deal with Congress, given strong public support to lower drug costs.” However, White House press secretary McEnany defended Trumps executive orders telling members of the press the executive orders “follow a long list of decisive actions taken by President Trump to reduce the costs of prescription drugs and further deliver on his promise to ensure every American has access to better healthcare at a lower cost.” McEnany however did not address the issue that most Americans will not actually be impacted with lower prescription costs, only those receiving government paid prescriptions.