Trump Signs Executive Order to Lower Drug Prices and Increase PBM Transparency

Trump signs executive order on PBMs transparency – Fierce Healthcare article (April 16, 2025) –

President Trump has signed a powerful new executive order designed to lower prescription drug costs and increase transparency in Medicare’s pricing system. This move directly challenges Pharmacy Benefit Managers (PBMs) and their role in driving up prices.

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Executive Order Goals: Clear, Focused, Actionable

The executive order outlines a bold plan to:

• Expose hidden pricing tactics in Medicare drug negotiations

• Target the most expensive drugs that burden the Medicare system

• Support pharmaceutical innovation while prioritizing patient needs

These steps aim to put patients back at the center of the healthcare system—while making it harder for middlemen to game the process.

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Holding PBMs Accountable: No More Hiding Behind Complexity

Trump’s order continues his earlier efforts to clamp down on drug middlemen, especially PBMs, who control much of the prescription drug flow in the U.S.

Instead of passing savings to patients, many PBMs keep the rebates and discounts for themselves. As a result, patients pay more while PBMs and insurers profit.

This order directs federal agencies to review the roles PBMs and other intermediaries play in drug pricing—and to recommend reforms that hold them accountable.

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New Rules Will Force Transparency in Health Plans

Labor Secretary Lori Chavez-DeRemer plans to propose regulations that will:

• Force PBMs to disclose direct and indirect compensation

• Increase transparency across health plans

• Strengthen employer protections under the Employee Retirement Income Security Act (ERISA)

These rules aim to help employers and workers understand how their drug benefits are really managed, and how much middlemen take from the system.

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Lawsuits Push Back Against High Costs

Employees have already begun fighting back. In one recent case, JPMorgan Chase faces a lawsuit over mismanaging prescription drug benefits, which allegedly raised out-of-pocket costs for workers.

This executive order takes action by requiring PBMs to reveal how much they pay brokers, who often influence which providers and services employers use.

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The White House Wants Real Competition

A recent White House Fact Sheet calls this effort a path to “radical transparency and competition” in drug markets. It sends a clear message: patients—not PBMs—should benefit from cost-saving deals.

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Why This Matters for You

Right now, PBMs and insurance companies split billions in secret rebates from drugmakers. Patients rarely see any savings—only rising drug prices and more red tape.

This order aims to change that dynamic by giving employers, doctors, and patients the information they need to make better choices.

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A Step Toward Reform, Not Just Talk

This isn’t just a press release. It’s a shift in how the government approaches prescription drug pricing. By pushing PBMs into the light, the federal government is saying enough is enough.

With stronger oversight and clear rules, we can finally make the system work for patients—not corporate middlemen.

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The Bottom Line

PBMs and insurers have quietly taken control of drug pricing for too long. President Trump’s executive order pushes for real transparency, better oversight, and a patient-first approach.

At RescueMeds, we stand with injured workers and all patients demanding fair, fast, and affordable access to care. We support this action—and hope it leads to real, lasting change.