In response to Donald Trump threatening Medicare’s ability to negotiate drug prices, DNC Chair Ken Martin released the following statement:

“From Day One, Donald Trump has attacked efforts to lower drug prices to line the pockets of his billionaire backers at the expense of the American people. Now, he is trying to threaten Medicare recipients’ access to cheaper drugs and give Big Pharma exactly what they asked for by delaying Medicare price negotiations for a range of prescription drugs — after the first round of negotiations last year was projected to deliver estimated savings of $1.5 billion in 2026 alone. Trump has made it clear: he doesn’t care about lowering costs for working families, he only cares about his billionaire backers’ bottom line.” 

Donald Trump signed an executive order caving to Big Pharma, delaying Medicare’s power to negotiate lower drug prices for 55 million Americans — after the first round of negotiations resulted in estimated savings of $1.5 billion for seniors in 2026 alone.  

Reuters: “Trump signs healthcare executive order that includes a win for pharma companies” 

“U.S. President Donald Trump directed his health department on Tuesday to work with Congress on revamping a law that allows Medicare to negotiate prescription drug prices, seeking to introduce a change the pharmaceutical industry has lobbied for. 

“Drugmakers have been pushing to delay the timeline under which medications become eligible for price negotiations by four years for small molecule drugs, which are primarily pills and account for most medicines. …

“Biden’s administration had negotiated a price cut of as much as 79% for the first group of 10 drugs seen as among the most costly to the Medicare program.” 

KFF: “In the new executive order, the Secretary of HHS is directed to work with Congress to implement a change in the Medicare Drug Price Negotiation Program to delay negotiation of so-called ‘small molecule’ drugs beyond 7 years after FDA approval under current law. This change would mean that small molecule drugs would be on the market longer before they are eligible to be selected for Medicare drug price negotiation, which could lead to higher Medicare prescription drug spending, higher prices, and potentially higher Medicare Part D premiums.”

KFF: “On August 15, 2024, CMS announced negotiated prices for the first 10 drugs that were selected for negotiation. … CMS has also estimated that Medicare beneficiaries will save $1.5 billion when these negotiated prices take effect in 2026.”

From Day One, Trump has attacked efforts to make drugs more affordable for hardworking Americans. 

White House: “The following executive actions are hereby revoked: …

“Executive Order 14087 of October 14, 2022 (Lowering Prescription Drug Costs for Americans).”

Center for Medicare and Medicaid Services: “President Biden issued Executive Order (EO) 14087, ‘Lowering Prescription Drug Costs for Americans,’ to further address prescription drug affordability through the work of the Centers for Medicare & Medicaid Services’ (CMS) Center for Medicare and Medicaid Innovation (the Innovation Center). The Innovation Center tests innovative payment and service delivery models designed to reduce program expenditures while preserving or enhancing the quality of care furnished to its beneficiaries.”

REMINDER: Trump has a long history of attacking Americans’ health care — including saying “there is a lot you can do” to cut Medicare and Medicaid and endorsing plans to gut Medicaid to pay for his tax handouts for billionaires. 

Joe Kernen, CNBC: “Have you changed your outlook on how to handle entitlements, Social Security, Medicare, Medicaid?”

Trump: “So first of all, there is a lot you can do in terms of entitlements, in terms of cutting.”

NBC News: “Senate Republicans released a new budget blueprint Wednesday that would pave the way for … making President Donald Trump’s 2017 tax cuts permanent.”

KFF: “Congress is currently targeting up to $880 billion or more in federal Medicaid spending reductions. The House passed a budget resolution instructing the House Energy & Commerce Committee (E&C) to reduce the federal deficit by at least $880 billion over 10 years. Although the budget resolution does not mention Medicaid, Medicaid comprises $8.2 trillion out of the $8.6 trillion in mandatory spending that E&C must use to come up with spending reductions (assuming Medicare cuts are off the table). As a result, major cuts to Medicaid are the only way to meet the House’s budget resolution required $880 billion (or more) in spending reductions.” 

Trump: “[T]he House Resolution implements my FULL America First Agenda, EVERYTHING, not just parts of it! We need both Chambers to pass the House Budget”

Forbes: “Trump Floats ‘Cutting’ Spending On Entitlements Like Social Security And Medicare”

Rolling Stone: “Trump Floats Cuts to Social Security and Medicare”

Trump has also repeatedly sided with Big Pharma over hardworking Americans, proposing cuts to Medicare and Medicaid in every single one of his budgets in his previous administration.

STAT News: “In a little-noticed move, a [Trump] Commerce Department unit has proposed a new rule that would prevent the federal government from using a controversial legal provision known as ‘march-in rights’ to combat the high prices of products developed with taxpayer dollars. And if adopted, the change may rob Americans of a tool that could be used to lower prescription drug costs, according to consumer advocates.”

Washington Post: “His avowed stance, however, is at odds with Trump’s own record as president: Each of his White House budget proposals included cuts to Social Security and Medicare programs.”

In his FY18, FY19, FY20, and FY21 budgets, Trump repeatedly proposed hundreds of billions in cuts to Medicaid.

Vox: “Trump said he wouldn’t cut Medicaid, Social Security, and Medicare. His 2020 budget cuts all 3.”

ProPublica: “The Trump Administration Cracked Down on Medicaid. Kids Lost Insurance.”

New York Times: “The Trump administration said on Thursday that it would allow states to cap Medicaid spending for many poor adults, a major shift long sought by conservatives that gives states the option of reducing health benefits for millions who gained coverage through the program under the Affordable Care Act.” 

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