Lowering Prices for Patients by Eliminating Kickbacks to Middlemen

What it means

This order aims to lower prescription drug costs for Medicare patients by eliminating "rebates" paid to middlemen in the healthcare system. It directs HHS to complete rulemaking that would redirect drug discounts directly to patients at the point of sale rather than to insurance companies and pharmacy benefit managers.

Expected impact

• Medicare patients could save billions on prescription drugs, potentially hundreds or thousands of dollars annually at the pharmacy counter
• Greater price transparency in drug purchasing, as discounts would be applied at point-of-sale rather than through hidden rebates
• Possible restructuring of how pharmacy benefit managers (PBMs) operate in the Medicare Part D program
• Implementation only if it doesn't increase federal spending, Medicare premiums, or patients' total out-of-pocket costs