Trump Healthcare Policy Changes: Reversing Biden’s Executive Orders and WHO Withdrawal

By Rene Pretorius

January 22, 2025

President Donald Trump has reversed several healthcare-related executive orders issued by Joe Biden. These include policies on COVID-19 management, artificial intelligence (AI) in healthcare, and support for the Affordable Care Act (ACA) exchanges. Trump also signed an executive order withdrawing the U.S. from the World Health Organization (WHO), citing concerns over pandemic management and political influences. We briefly review the Trump healthcare policy changes.

Drug Pricing and Healthcare Costs

Trump rescinded an executive order requiring the Center for Medicare and Medicaid Innovation (CMMI) to test models aimed at controlling drug spending. This decision halted experiments on high-value drugs and outcome-based payment agreements. His administration also abandoned Biden’s initiatives to cap insulin costs and allow Medicare to negotiate drug prices.

Both administrations addressed drug pricing differently. Trump proposed a “most favored nation pricing” model to align Medicare drug costs with those in other high-income countries. Biden later rescinded this policy and introduced measures through the Inflation Reduction Act to control prescription costs.

Impact on Global Health and U.S. Policy

The U.S. has been a key WHO member and top donor, contributing $1.28 billion in 2022 and 2023. Trump’s withdrawal order claims the WHO’s pandemic response and financial structures are unfair. This move may weaken global health initiatives and limit U.S. influence in international health policies.

Reversing COVID-19 response directives could disrupt federal coordination in future pandemics. Changes in AI regulations might slow the adoption of new healthcare technologies, affecting efficiency and patient outcomes. These policy shifts highlight the ongoing debate between Trump’s and Biden’s healthcare strategies.

Consequences for Stakeholders

Trump’s changes impact healthcare providers, insurers, and pharmaceutical companies. Uncertainty in drug pricing regulations and global health engagement may alter strategic planning. Medicare recipients could face higher prescription costs. The policy shifts signal a fundamental realignment of healthcare priorities, affecting multiple sectors of the industry.

 

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