Payam Javan: On April 15, 2025, President Donald Trump signed an executive order aimed at reducing the cost of prescription medications for Americans. The order includes measures to facilitate state importation of lower-cost drugs from Canada, standardize pricing, enhance transparency, and reduce drug development costs. This builds on Trump’s previous efforts during his first term to address high drug prices, with a focus on improving affordability for Medicare recipients and low-income patients through better pricing negotiations and aligned payment structures.

The executive order directs the Department of Health and Human Services to streamline Medicare drug pricing, potentially saving up to 60% on certain treatments like cancer drugs by standardizing payments across care settings. While the move has been praised for addressing healthcare costs, concerns remain about potential drug shortages due to proposed tariffs on pharmaceutical imports, which could counteract these efforts. The order reflects Trump’s ongoing commitment to reforming healthcare pricing, though its full impact depends on implementation and congressional cooperation.