Paul Sanchez
President Donald Trump's administration has focused on reshaping the government's role in the health industry, with an emphasis on competition and innovation. Trump has signed multiple executive orders impacting healthcare, including one to reduce prescription drug costs by up to 80% and another to empower patients with clear and accurate healthcare pricing information. The administration has also proposed large tariffs that could impact medication costs and supply chains. Trump has been hostile to the Affordable Care Act, leading to a slight rise in uninsurance rates during his first term. His actions regarding healthcare have included rescinding policies related to COVID-19 and abortion, as well as attempting to repeal Obamacare.
| Characteristics | Values |
|---|---|
| Healthcare Agenda | Examining deductions, credits, and other tax benefits |
| Tariffs for Mexico, China, and Canada | |
| Reducing costs for American families | |
| Empowering patients with clear, accurate, and actionable healthcare pricing information | |
| Making healthcare prices transparent | |
| Reducing prescription drug costs | |
| Rescinding policies to limit drug spending by Medicaid and Medicare | |
| Revoking policies implemented to respond to the Covid-19 pandemic | |
| Revoking policies to enhance cooperation with other countries in the event of another pandemic | |
| Revoking policies to fund or promote "elective abortion" | |
| Restructuring Medicaid | |
| Reducing coverage for low-income people |
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What You'll Learn
Trump signs executive order to cut drug prices
On May 12, 2025, former US President Donald Trump signed a wide-reaching executive order directing drugmakers to lower the prices of their medicines to align with what other countries pay. The order gives drugmakers price targets within 30 days and will take further action to lower prices if those companies do not make "significant progress" toward those goals.
Trump said that the government would impose tariffs if the prices in the US did not match those in other countries, and he was seeking cuts of between 59% and 90%. The former president added that the order was for the American people, and he was doing it against the most powerful lobby in the world, the drug lobby.
The executive order is likely to face legal challenges, particularly for exceeding limits set by US law. Health policy lawyer Paul Kim stated that the order's suggestion of broader or direct-to-consumer importation stretches beyond what the statute allows. If drugmakers do not meet the government's expectations, it will use rule-making to bring drug prices to international levels and consider a range of other measures, including importing medicines from other developed nations and implementing export restrictions.
The Trump administration's plan to cut drug prices won't be limited to Medicare prescriptions but will also target medications covered by Medicaid and private insurance. The administration hasn't singled out a specific class of drugs for price cuts, but officials said it's fair to expect that GLP-1s—a class of drugs that includes Ozempic, Wegovy, and Zepbound—will be included.
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Trump's plans to restructure Medicaid
One proposal is to establish work requirements, such as "community engagement requirements" of at least 80 hours per month of work, education, or service for able-bodied adults without dependents. This would be in addition to changes the Trump administration could make through executive action, including work requirements. Other proposals include altering eligibility thresholds and limiting federal Medicaid spending with block grants or per capita cap financial systems.
These measures are estimated to save billions of dollars over the next decade and are likely part of a broader effort to reduce the federal deficit and reallocate resources more efficiently. While these changes would provide states with enhanced control over the program, they would also lead to significant coverage losses.
Trump has previously supported policies to repeal or weaken the Affordable Care Act (ACA) and reduce Medicaid financing, although these proposals did not pass Congress in 2017. With a Republican-controlled Congress, Trump could now enact foundational changes to Medicaid, which serves 1 in 5 Americans and is the primary payer for long-term care in the United States.
In addition to restructuring Medicaid, Trump has also signed executive orders to increase price transparency in healthcare and slash drug prices, including those for weight-loss medications. These orders aim to empower patients with clear and accurate pricing information and lower costs for American families.
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Trump's emphasis on chronic disease prevention
President Trump has outlined a series of health policy initiatives aimed at reshaping the role of government in the health industry. One of the main focuses of his second term in office is to reduce the cost of prescription drugs and pharmaceuticals by up to 80%. This plan will target medications covered by Medicaid and private insurance, and will not be limited to certain drugs under Medicare.
Trump has also emphasised chronic disease prevention through the "Make America Healthy Again" (MAHA) initiative, aiming to address rising rates of conditions like obesity and autoimmune disorders. This policy includes establishing a presidential commission to investigate these health issues and reforming federal health agencies.
Trump's administration has also taken steps to make healthcare prices more transparent, empowering patients with clear and accurate information. This includes mandating that hospitals and insurers make prices public, allowing patients to compare prices and find the highest-quality care at the lowest cost.
Trump has also proposed major cuts to Medicaid funding, ACA subsidy programs, and drug pricing. The GOP is considering various reforms to Medicaid, including establishing work requirements, altering eligibility thresholds, and limiting federal spending. These measures are estimated to save billions of dollars over the next decade, but will also result in significant coverage losses.
Trump has also revoked several policies implemented by former President Biden in response to the Covid-19 pandemic, including testing, research, treatment, economic relief, and cooperation with other countries. He has also ended the use of federal taxpayer dollars to fund or promote "elective abortion".
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Trump's efforts to combat fraud, waste and abuse in healthcare
President Trump has outlined a series of health policy initiatives aimed at reshaping the role of government in the health industry. A key focus of these policies is to combat fraud, waste and abuse in the healthcare sector.
The Trump administration has committed to intensifying efforts to tackle these issues, targeting eligibility and instances of overspending. This includes examining deductions, credits, and other tax benefits, as well as tax rates and changes that could impact overall tax exposure. The administration has also proposed large tariffs for countries like Mexico, China and Canada, which could impact the costs of essential medications and equipment.
The administration's plan to restructure Medicaid involves budget-cutting measures, such as establishing work requirements, altering eligibility thresholds, and limiting federal spending. These measures are expected to save billions over the next decade and reduce the federal deficit. While the Trump administration has stated that they will not cut Medicaid benefits, they aim to address the significant fraud, waste and abuse within the program.
In addition, President Trump has taken action to increase transparency in healthcare pricing. He has mandated that hospitals and insurers make prices public, allowing patients to compare prices and find the highest-quality care at the lowest cost. This initiative is designed to lower costs for American families by preventing hospitals and insurance companies from benefiting at the expense of patients due to hidden prices.
Furthermore, the Trump administration has initiated a restructuring of the Department of Health and Human Services (HHS) to optimize its workforce. This includes personnel cuts, centralization of functions, and consolidation of divisions, aiming to improve efficiency and reduce costs.
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Trump's impact on immigration and healthcare
During his first term, Donald Trump's administration instituted a Muslim ban, tried to deport Dreamers and others with temporary legal protection, separated families seeking asylum, and fought to build a wall at the US-Mexico border. The Trump administration set an unprecedented pace for executive action on immigration, reshaping many aspects of the US immigration system through changes large and small. Over four years, 472 administrative changes were enacted, severely diminishing humanitarian protections, closing off the US-Mexico border, making immigration enforcement more random, and making legal immigration more difficult to achieve.
Trump has promised to pursue even more extreme anti-immigrant policies if he wins a second term. These include mass deportations, ending birthright citizenship, depriving undocumented children of their right to a public education, and reinstating family separation at the border.
In terms of healthcare, Trump's administration has taken several actions, including signing an executive order to slash drug prices, enhancing Part D plans to provide seniors with Medicare access to insulin, reducing Medicare Part D prescription drug premiums, ending the Unapproved Drugs Initiative, promoting research and innovation in healthcare, and protecting patients with pre-existing conditions. The administration has also expanded access to medication-assisted treatment and launched new online tools to help seniors compare costs and streamline data.
Trump's proposed tax reforms, tariff policies, and immigration reform could also impact the healthcare workforce, disrupt supply chains, and impose budget constraints on health systems. The administration aims to reduce federal spending by allowing enhanced Affordable Care Act (ACA) subsidies to expire, which could lead to increased premiums and out-of-pocket costs for millions. Additionally, the GOP is considering various reforms to Medicaid, including establishing work requirements, altering eligibility thresholds, and limiting federal spending, which could result in significant coverage losses.
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Frequently asked questions
Trump has made healthcare price transparency a priority, signing an executive order to ensure hospitals and insurers disclose actual prices, not estimates. He has also signed an executive order to reduce the cost of prescription drugs and pharmaceuticals by up to 80%.
Trump's executive order on healthcare price transparency is expected to make the healthcare system more affordable and easier to navigate for patients. The order on prescription drug costs is expected to reduce costs for American families.
Trump has proposed major cuts to Medicaid funding and rolled back policies to limit drug spending by Medicaid and Medicare. He has also considered reforms to Medicaid with a strong interest in budget-cutting measures, including establishing work requirements, altering eligibility thresholds, and limiting federal spending.
Trump's administration has outlined health policy initiatives aimed at reshaping the government's role in the health industry and realigning market incentives towards competition and innovation. He has emphasised chronic disease prevention through the "Make America Healthy Again" (MAHA) initiative and seeks to combat fraud, waste, and abuse in the healthcare sector.
