President Donald Trump wasted no time reversing key healthcare reforms on his first day back in office, signing an executive order that undoes initiatives introduced by his predecessor, Joe Biden, aimed at lowering prescription drug prices and increasing access to advanced therapies for Medicaid recipients. The move, part of a broader agenda to roll back Biden-era policies, has sparked a fierce debate about the implications for millions of Americans reliant on affordable medications and innovative treatments.
Biden's Executive Order 14087, signed in 2022, sought to address systemic challenges in healthcare affordability. The key initiatives included a $2 copay cap for generic medications under Medicare, a Cell and Gene Therapy Access Model to make cutting-edge treatments accessible to Medicaid recipients, and measures to discourage pharmaceutical companies from fast-tracking ineffective drugs for profit. These programs were widely regarded as pivotal in easing financial burdens for vulnerable populations.
"Too many Americans face challenges paying for prescription drugs," Biden said when implementing the reforms. "On average, Americans pay two to three times as much as people in other countries for prescription drugs, and one in four Americans who take prescription drugs struggle to afford their medications."
Trump's decision to rescind these initiatives marks a stark departure from efforts to control drug prices, with his administration arguing that the previous policies contributed to inflation and inefficiency. "The previous administration has embedded deeply unpopular, inflationary, illegal, and radical practices within every agency and office of the federal government," Trump stated in the executive order. "The revocations within this order will be the first of many steps the United States federal government will take to repair our institutions and our economy."
The implications of the rollback are significant. Under Biden's initiatives, multi-state purchasing agreements were designed to lower the cost of high-priced therapies, such as those used to treat cancer and sickle cell anemia. By pooling resources, states could make these life-saving treatments available to Medicaid recipients, many of whom live below the poverty line. With the program now dismantled, patients may face renewed barriers to access.
The decision has also halted the development of cost-reduction models directed by the Department of Health and Human Services. Without these mechanisms, Medicare and Medicaid beneficiaries may see a rise in out-of-pocket expenses for prescription drugs. Critics argue that the rescission disrupts progress toward creating a more equitable healthcare system.
California Attorney General Rob Bonta criticized the move, vowing to challenge the order. "As home to more immigrants than any other state in the country, California has a vested interest in ensuring that the federal government recognizes the fundamental rights of the children of immigrants who are born in our state," Bonta said in response to the rollback.
Biden's initiative to cap generic drug prices at $2 was particularly aimed at improving medication adherence among seniors, a group that often struggles with high healthcare costs. The rescission of this program could lead to reduced medication compliance, exacerbating health disparities and increasing long-term healthcare expenditures.
The Cell and Gene Therapy Access Model had offered a glimmer of hope for states like Alabama, which had opted into the program to address gaps in treatment affordability for Medicaid recipients. By ending the initiative, Trump has reignited concerns about the accessibility of advanced medical treatments, particularly for low-income and marginalized populations.
Trump's reversal also includes the cessation of Medicare's cost-control model for drugs that received accelerated FDA approval. The Biden administration had hoped to incentivize pharmaceutical companies to ensure the efficacy of their products before rushing them to market. Critics now warn that the rollback could weaken safeguards against the premature introduction of drugs, potentially compromising patient safety.
The Democratic National Committee condemned the action, describing it as a betrayal of campaign promises to prioritize Americans' financial well-being. "Donald Trump is already following through on his dangerous plans to jack up the costs of drugs to appease his billionaire backers," said Alex Floyd, the committee's rapid response director. "Trump is again proving that he lied to the American people and doesn't care about lowering costs-only what's best for himself and his ultra-rich friends."
