On his first day, President Donald Trump revoked several Biden-era executive orders, including one that directed the Department of Health and Human Services (HHS) to explore new health care payment models aimed at reducing prescription costs for Medicare and Medicaid beneficiaries.
The rescinded order, Executive Order 14087, sought to promote access to innovative drug therapies and reduce cost-sharing for commonly used medications. For example, one proposed model would have allowed Medicare Part D plans to cap copays for 150 high-value generic drugs at $2 per month.
The HHS also examined strategies like multi-state agreements to pool Medicaid purchasing power for high-cost drugs and systems to incentivize manufacturers to complete clinical trials more efficiently. However, none of these models were implemented under President Biden.
Despite this repeal, key Medicare cost-saving provisions from the Inflation Reduction Act (IRA), including a $2,000 annual out-of-pocket spending cap, remain in effect.
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