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New Executive Orders on Drug Pricing

On July 24, President Trump signed four executive orders all aimed at reducing the cost of prescription drugs. None of the orders will go into effect immediately as all will have to go through some kind of rulemaking process.

The orders included:

The fourth order, ‘the favored nations plan,’ would link payments for certain Medicare Part B drugs to the cost of those same drugs in other countries. This proposal is similar to one released in October 2018 by the Trump Administration – the International Pricing Index Model (IPI) for Medicare Part B Drugs. ASH opposed the implementation of the IPI Model because of the concern that it could negatively impact access to care for the patients ASH members serve. It is still unclear whether or not this order will be released – the Administration is allowing pharmaceutical companies a month to present an alternative plan.