Order expected to affect specific medications covered under Medicare that are administered in a health care setting
MONDAY, May 12, 2025 (HealthDay News) -- ?Today, President Donald Trump signed an executive order to lower the costs of some medications.
The executive order instructs the U.S. Department of Health and Human Services to align Medicare payments for drugs given in a doctor's office with the lowest prices paid by other nations. Drug manufacturers will have 30 days to lower the cost of prescription drugs in the United States or face new limits over what the government will pay.
This approach, referred to as the "most favored nation" approach, would link the prices the federal government pays pharmaceutical companies for certain drugs to the prices paid by a group of other economically advanced countries, according to the Associated Press.
This proposal is expected to affect specific medications covered under Medicare that are administered in a health care setting, such as infusions for cancer treatment and other injectable drugs. This change has the potential to generate considerable cost savings for the government.
However, the pharmaceutical industry strongly opposes the order. In 2020, President Trump signed a similar executive order, but a court order later blocked the rule from going into effect. At the time, the pharmaceutical industry said the move would give foreign governments the "upper hand" in deciding the value of medicines in the United States, adding that lower prices not only hurt profits but also have a detrimental effect on innovation and the development of new drugs.
This plan will likely only cover medications administered under Medicare Part B, the insurance for doctor's office visits, the AP reported. Medicare beneficiaries will still be responsible for a portion of the costs for these medications received during their doctor's visits. In addition, this new order likely excludes coverage for many commonly filled prescription medications.
By Stephanie Brown HealthDay ReporterCopyright © 2025 HealthDay. All rights reserved.