Lowering Drug Prices by Once Again Putting Americans First

What it is

This is Executive Order 14273, signed April 15, 2025, directing federal agencies—chiefly the Department of Health and Human Services—to take steps aimed at lowering prescription drug prices. It sets deadlines for agencies to issue guidance, draft rules, run studies, and deliver policy recommendations to the President; it does not itself change any prices or laws.

What it changes

The order assigns a series of dated tasks. Within 60 days, HHS must propose guidance for the Medicare Drug Price Negotiation Program (for the 2028 price year and manufacturer compliance in 2026–2028) to improve transparency and target high-cost drugs. Within 90 days, HHS must condition certain community-health-center grants so insulin and injectable epinephrine are offered at or below the 340B discounted price (plus a minimal fee) to low-income patients with high cost-sharing, high deductibles, or no insurance; act to streamline state drug importation under FDCA section 804; and deliver recommendations on drug-supply-chain “middlemen.” Within 180 days, agencies must recommend ways to stabilize Medicare Part D premiums, publish a plan to survey hospital drug acquisition costs, report on speeding generic/biosimilar and over-the-counter approvals, propose Labor Department rules on pharmacy benefit manager fee disclosure, and hold listening sessions on anti-competitive drug-maker behavior. Within 1 year, HHS must develop a rulemaking plan and pick a payment model to test for getting better value on high-cost Medicare drugs.

Who is affected

Medicare and Medicaid beneficiaries—especially seniors and low-income patients who use insulin or epinephrine—are the intended beneficiaries, along with taxpayers. Drug manufacturers, pharmacy benefit managers, insurers offering Part D plans, hospitals, community health centers, and states would be subject to the resulting studies, rules, and payment changes. Because the order only directs agencies to act, any concrete effect depends on the guidance, rules, and reports it calls for, and the order states it creates no legally enforceable rights.