What Biden’s Executive Order To Lower Prescription Drug Costs Means for Your Wallet

Mandatory Credit: Photo by CAROLINE BREHMAN/EPA-EFE/Shutterstock (13465948c)US President Joe Biden delivers remarks on the Inflation Reduction Act and his administration's fiscal policies, at Irvine Valley College, in Irvine, California, USA, 14 October 2022.
CAROLINE BREHMAN/EPA-EFE/Shutterstock / CAROLINE BREHMAN/EPA-EFE/Shutterstock

President Joe Biden signed an executive order on Friday instructing the Department of Health and Human Services to explore more ways to lower the costs of prescription drugs, according to an announcement from the White House. 

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The executive order mandates that the U.S. Department of Health & Human Services (HHS) outline, within 90 days, how it will implement new models of care and payment to lower drug costs, a White House official who declined to be named, told Reuters on Friday. 

If passed, the new bill would seek to lower prescription drug costs for Americans. The specifics of how that would be done have not yet been disclosed. New information should become available if the bill is enacted or gains steam.  

This executive order comes nearly two months after the $739 billion Inflation Reduction Act was signed into law by Biden on Aug. 16. The bill was designed to lower inflation and slash the national deficit by $305 billion over the next ten years. 

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Under the Inflation Reduction Act, a federal agency will be able to negotiate prices for prescription drugs under Medicare, which could lower the costs of certain medications for seniors. It also touts a $2,000 limit on out-of-pocket costs beginning in 2025 for folks enrolled in Medicare Part D. In addition, the bill assigns a $35 monthly cap per prescription of insulin. 

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Biden’s latest executive order suggests that the president is taking his commitment to cutting prices on prescription drug costs a step further, and comes right in time when the race for the Nov. 8 midterm elections is well underway. 

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About the Author

Nicole Spector is a writer, editor, and author based in Los Angeles by way of Brooklyn. Her work has appeared in Vogue, the Atlantic, Vice, and The New Yorker. She's a frequent contributor to NBC News and Publishers Weekly. Her 2013 debut novel, "Fifty Shades of Dorian Gray" received laudatory blurbs from the likes of Fred Armisen and Ken Kalfus, and was published in the US, UK, France, and Russia — though nobody knows whatever happened with the Russian edition! She has an affinity for Twitter.
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