President Trump Signs Four Executive Orders Aiming to Lower Insulin and Other Drug Prices
President Trump signed four Executive Orders today, aiming to lower prices of insulin and other prescription drug costs.
The first order directs federally qualified health centers, who receive discount prices “that range between 25-50% of Average Wholesale Price” on certain drugs, to pass along these discounts on insulin and epinephrine to certain low-income Americans. This new pricing will apply to patients who do not receive insulin and epinephrine “through commercial insurance or Federal programs, such as Medicare and Medicaid”.
The second order will allow “for safe importation of certain drugs” from Canada, as well as authorize the “re-importation of insulin”. Re-importation applies to drugs that were originally manufactured in the U.S. and exported for sale in another country, which Americans then re-import for personal use by filling prescriptions, in Canadian or Mexican pharmacies for instance.
The third order mandates that “discounts offered on prescription drugs should be passed on to patients”. As such, the order permits health plan sponsors and pharmacies to apply discounts for patient’s “in order to lower the patient’s out-of-pocket costs”.
The fourth order lowers the price the United States pays “Medicare Part B drugs” by setting a price ceiling equal to that “available in economically comparable countries”. This order specifically will not be implemented until August 24, giving time for Congress to pass similar legislation of their own.