White House Drug Order Delays Medicare Negotiations, Benefits Big Pharma

New Executive Order on Prescription Drugs Sparks Controversy

The White House has recently introduced a new executive order aimed at lowering prescription drug costs for Americans. While the announcement initially seemed promising, it has sparked significant debate due to some controversial provisions.

A key aspect of the executive order involves delaying Medicare's ability to negotiate prices for certain widely used medications. This aspect of the order would necessitate approval from Congress and could push back negotiations by several years.

Previously, the Biden administration's 2022 Inflation Reduction Act empowered Medicare to actively negotiate drug prices, marking a significant achievement for working families and retirees. The delay introduced by the new order seems to favor pharmaceutical companies, providing them with more time to set prices independently.

Additionally, the order suggests importing lower-cost medications from Canada. However, existing U.S. tariffs on Canadian goods raise questions about the potential effectiveness of this strategy. These tariffs might increase the overall cost of drug imports or even lead to shortages, complicating efforts to reduce prices for consumers.

While several components of the executive order require congressional consent to be implemented, the overall approach has drawn criticism for seemingly prioritizing pharmaceutical interests over those of workers and retirees. Critics argue that "anti-union extremists are trying to cut public services to pay for billionaire tax breaks," which could prove financially detrimental to many Americans.

In response, organizations like AFSCME encourage individuals to Get Organized. The initiative aims to unite members in advocating for the preservation of essential services and ensuring that workers do not merely survive but thrive.