President Donald Trump didn't wait long in his second term to begin shaking things up in Washington, D.C. In less than two weeks back in the White House, Trump delivered upheaval in multiple areas, including immigration enforcement, federal grants, and even the names of geographical locations.
But has he done anything related to Medicare? Actually, yes. Here are four things you need to know about changes made by Trump that impact the popular federal program since Inauguration Day.
Image source: Official White House photo by D. Myles Cullen.
1. Prescription drug prices aren't being increased
One of the many executive orders on Trump's first day back in office was to rescind several executive orders previously issued by former President Joe Biden. Included in that group was Executive Order 14087 signed by Biden on Oct. 14, 2022, with the stated goal of lowering prescription drug costs for Americans.
At first glance, it might seem that Trump's action increases prescription drug prices. Rep. Jared Golden, D-Maine, posted on X, "At a time when we should be lowering prescription drug costs, this order by President Trump closes the door to $2 generics and cuts the ACA enrollment window for uninsured Americans."
But did Trump's executive order actually raise prescription drug prices for Medicare beneficiaries or anyone else? No, current drug prices won't be affected by this move. The Inflation Reduction Act of 2022, which was signed into law by Biden, phases in a cap for out-of-pocket costs for Medicare beneficiaries and established a $35 per-month cap on insulin. Overturning these provisions would require an act of Congress.
2. Trump's executive order could impact initiatives to lower drug prices in the future
There is more to the story, though. Former President Biden's Executive Order 14087 directed the Department of Health and Human Services (HHS) to study potential ways to reduce drug prices. One of the ideas floated to accomplish this goal (as mentioned in Rep. Golden's social media post but not included in the text of the executive order) was to place a $2 per-month out-of-pocket cap on some generic drugs.
HHS didn't complete the initiative to lower drug prices before Biden left office. With Trump's executive order rescinding Biden's executive order, the department's efforts to research how to lower Medicare drug prices will come to a screeching halt.
We'll never know if Trump's action thwarted future changes that would have reduced drug prices for Medicare beneficiaries. However, during his first term, Trump supported policies that would lower Medicare drug prices.
3. The president's move creates some uncertainty for Medicare
The rescission of Executive Order 14087 without a new executive order directing HHS to explore ways to lower Medicare costs does create some uncertainty for the program. However, the language of Trump's executive order set the stage for future actions. It read: "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."
4. Medicare appears to be in capable hands with the new Acting HHS Secretary
Trump issued another directive that immediately impacted Medicare. He named Dorothy Fink as the Acting HHS Secretary. Medicare appears to be in capable hands with Fink at the helm of its parent agency.
Fink earned her MD degree from Georgetown University School of Medicine. She is board-certified in endocrinology, internal medicine, and pediatrics. Trump appointed her as the deputy assistant secretary for women's health in his first presidential term. Before taking the helm as acting HHS Secretary, she served as the director of HHS' Office on Women's Health.
It remains to be seen how long Fink will lead HHS, though. Trump nominated Robert F. Kennedy, Jr. to be the HHS Secretary. Kennedy faced Senate committee confirmation hearings last week.
