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Pharmacy Times
Pharmacy Policy Updates for June 2025
Key Takeaways
- Trump's executive order aims to reduce drug costs by linking them to international prices, but its implementation faces skepticism.
- The ECAPS Act seeks to ensure Medicare beneficiaries' access to pharmacist services, addressing care gaps in underserved areas.
New executive orders and legislation aim to lower prescription drug costs and enhance access to pharmacist services for seniors across the US.
Executive Order Aims to Lower Prescription Drug Costs
President Donald J. Trump has signed an executive order that aims to reduce drug costs for Americans and tie them to what other nations pay for medications. According to Trump, patients could see cost reductions of 30% to 80%, but experts question the feasibility and practicality of implementing such a policy within the complex United States drug pricing and supply system.1,2
Image credit: Eric Hood | stock.adobe.com
The executive order, “Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients” (14297), builds on a previous one, “Lowering Drug Prices by Putting America First” (13948). The first one was introduced on September 13, 2020, near the end of Trump’s first term, but was shut down by a federal judge due to the administration’s failure to comply with the proper implementation processes. A key feature of this order was the introduction of the “most favored nation” pricing model, which as been criticized by some experts.3,4
How this pricing model will be implemented and whether pharmaceutical manufacturers will be able to meet the expectations of the 2025 executive order, if upheld, is uncertain. The order states that if manufacturers are unable to meet the 30-day deadline, the secretary of the Department of Health and Human Services, Robert F. Kennedy Jr, is permitted to develop a new rule that ties American drug prices to those of other nations.1
“My opinion is that this policy will not really accomplish much, although I understand its intent,” Ron Lanton III, Esq, a regulatory attorney and partner at Lanton Law PLLC, explained. “First, this may be blocked by a federal judge again. Second, it does not address the core issues of higher prices, such as the use of rebates by insurers. And finally, the most favored nation pricing model is unworkable.”—Alexandra Gerlach, Associate Editor
REFERENCES
1. Trump signs executive order setting 30-day deadline for drugmakers to lower prescription drug costs. Associated Press. May 12, 2025. Accessed May 13, 2025. https://apnews.com/article/trump-prescription-drugs-prices-most-favored-nation-4c620a32ccd193b793ba1558f3fe93e0
2. Delivering most-favored-nation prescription drug pricing to American patients. White House. May 12, 2025. Accessed May 13, 2025. https://www.whitehouse.gov/presidential-actions/2025/05/delivering-most-favored-nation-prescription-drug-pricing-to-american-patients/
3. Trump to pitch sweeping Medicare drug price plan. Politico. May 7, 2025. Accessed May 13, 2025. https://www.politico.com/news/2025/05/07/trump-sweeping-medicare-drug-price-plan-00334167
4. Executive Order 13948—Lowering Drug Prices by Putting America First. The American Presidency Project. September 13, 2020. Accessed May 13, 2025. https://www.presidency.ucsb.edu/documents/executive-order-13948-lowering-drug-prices-putting-america-first
Coalition of Pharmacy Organizations Urges Congress to Pass ECAPS Legislation
The future of pharmacy care coalition, which includes national organizations such as the American Pharmacists Association, American Society of Health-System Pharmacists, and the National Association of Chain Drug Stores, has issued an urgent letter to Congress requesting the passage of the Ensuring Community Access to Pharmacist Services (ECAPS) Act.1
The bipartisan legislation, known as House Resolution 3164, would affirm that senior Medicare beneficiaries have access to pharmacist-provided treatment and testing services for conditions such as COVID-19 and respiratory syncytial virus and ensure that pharmacists can be reimbursed as providers under Medicare Part B for such services. It could bridge gaps that currently prevent patients in underserved or rural areas of the country from receiving proper care for common illnesses.1-3
ECAPS would “ensure seniors, including those living in rural areas and vulnerable communities, can turn to their local pharmacists for testing and treatment services that can protect them from certain common respiratory conditions,” the Future of Pharmacy Care Coalition said in a news release. “Congress must move quickly and provide seniors with Medicare coverage in states where pharmacists can offer testing and treatment services for conditions that, although common, can quickly become life-threatening if not properly managed.”1—Luke Halpern, Assistant Editor
REFERENCES
1. National coalition urges Congress to pass bipartisan legislation to ensure seniors’ access to essential pharmacist services. News Release. Future of Pharmacy Care Coalition. May 2, 2025. Accessed May 8, 2025. https://pharmacycare.org/national-coalition-urges-congress-to-pass-bipartisan-legislation-to-ensure-seniors-access-to-essential-pharmacist-services/
2. Ensuring Community Access to Pharmacist Services Act, HR 3164, 119th Cong, 1st session (2025). Accessed May 8, 2025. https://www.congress.gov/bill/119th-congress/house-bill/3164/all-actions
3. Congress reintroduces legislation ensuring patient access to pharmacists’ services. News release. ASHP News Center. May 5, 2025. Accessed May 8, 2025. https://news.ashp.org/News/ashp-news/2025/05/05/congress-reintroduces-legislation-ensuring-patient-access-to-pharmacists-services
California Governor Announces Updated Plan to Rein in PBMs
California Governor Gavin Newsom announced a new plan to regulate pharmacy benefit managers (PBMs), which he says increases patient prescription drug costs. The move comes less than a year after he vetoed legislation to implement similar oversight of PBMs.1,2
Under the proposal, PBMs must be licensed and regulated by the Department of Managed Health Care (DMHC), report operational and financial details, submit contracts and regular financial audits to DMHC, and report detailed drug pricing data to the Department of Health Care Access and Information. Furthermore, DMHC would have clear authority to enforce rules and penalize violations.1
As part of another action designed to reduce drug costs, Newsom also announced the expansion of CalRx, the state’s initiative to produce generic drugs under the state’s own label, giving CalRx the authority to purchase brand-name drugs. According to a news release, this would give the state more tools to respond to supply chain disruptions or other restrictions.1
“Prescription drug prices are out of control and we’re shining a light on hidden costs—while also giving CalRx more tools to respond to supply chain disruptions, market manipulation, or politically motivated abortion restrictions,” Newsom said in a news release.1—Aislinn Antrim, Managing Editor
REFERENCES
1. Governor Newsom’s budget to help lower drug costs, expand authority to access medication abortion through CalRx. News release. Governor Gavin Newsom. May 13, 2025. Accessed May 14, 2025. https://www.gov.ca.gov/2025/05/13/governor-newsoms-budget-to-help-lower-drug-costs-expand-authority-to-access-medication-abortion-through-calrx/
2. Koseff A, Hwang K. Gavin Newsom says these middlemen drive up drug prices. He’s got a new plan to fix it. Cal Matters. May 13, 2025. Accessed May 14, 2025. https://calmatters.org/health/2025/05/newsom-pharmacy-benefit-managers/
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