What Biden’s executive order to cut prescription drug costs means for your wallet

President Joe Biden on Friday signed an executive order directing the Department of Health and Human Services to explore other ways to reduce prescription drug costs, according to a White House announcement.

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The executive order directs the US Department of Health and Human Services (HHS) to describe, within 90 days, how it will implement new care and payment models to reduce drug costs, an official told Reuters. of the White House who declined to be named. Friday.

If passed, the new bill would aim to reduce prescription drug costs for Americans. Details of how this would be done have yet to be released. New information should become available if the bill is enacted or gains momentum.

The executive order comes nearly two months after Biden signed into law the $739 billion Inflation Cut Act on August 16. The bill aimed to reduce inflation and reduce the national deficit by $305 billion over the next ten years.

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

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Biden’s latest executive order suggests the president is taking his commitment to lowering prescription drug prices one step further and coming just in time when the race for the Nov. 8 midterm election is well underway.

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