Statement:

Proposed CMS Cuts to State-Directed Payments

Administration Update: ‘Most Favored Nation’ Drug Pricing 

May 13, 2025
Julie Kozminski

America’s Essential Hospitals is closely monitoring the executive orders signed by President Trump since he took office on Jan. 20, and will provide members with regular updates on the status of these orders as they are reviewed by federal courts. 

Since the association’s last update on April 29, the president signed multiple executive orders related to pharmaceuticals. The first aims to reduce the amount of time needed to build pharmaceutical manufacturing facilities in the United States. The second institutes a “most favored nation” drug pricing model. 

President Trump also issued an executive order to reduce gain-of-function research in the United States and abroad. 

Additionally, pursuant to an earlier executive order, the Department of Justice and Federal Trade Commission sent a joint letter to agency heads naming opportunities to eliminate anticompetitive federal regulations, such as regulations promulgated under the Affordable Care Act. 

Finally, a coalition of attorneys general filed suit challenging the reorganization of the Department of Health and Human Services (HHS), while a federal judge in California instituted a temporary restraining order halting the implementation of HHS’ reduction in force and reorganization plan. 

The association’s latest review of the Trump administration’s executive actions and their potential effects on essential hospitals is available for members

Contact Director of Policy Rob Nelb, MPH, at rnelb@essentialhospitals.org or 202.585.0127 with questions.