We will continue to monitor this.

Claim: A recent social media post falsely claimed Donald Trump increased prescription drug costs by reversing President Biden’s Medicare and Medicaid price caps. Let’s examine the facts.

Inflation Reduction Act Protections: The Inflation Reduction Act of 2022 established vital price caps on vaccines and insulin for Medicare recipients. Congress passed this law, so an executive order can’t overturn it. These caps remain in place.

Biden’s Executive Order Repealed: While it’s true that Trump repealed a 2022 Biden executive order, that order only directed HHS to consider future cost-cutting measures. It didn’t establish any current price caps. Therefore, Trump’s action didn’t affect any existing caps.

Voluntary Reductions Safe: Insulin manufacturers’ voluntary price cuts (down to $35 or less) remain unaffected by Trump’s actions.

Medicare Negotiations Proceed: Furthermore, the Inflation Reduction Act empowers Medicare to negotiate drug prices. The Trump administration even defended this program in court. This suggests that the lower drug prices, slated for 2026, will likely stay.

Where Did the 4200% Claim Come From? Before price caps existed, some reports cited potential out-of-pocket insulin costs reaching $1,400 per month. This equals nearly 4,000% of the Inflation Reduction Act’s $35 cap. So, while a high number, it’s related to a potential cost before the caps.

Our findings align with a comprehensive fact check by USA TODAY, which debunked the claim that Trump reversed Medicare drug price caps. See their in-depth report: https://www.usatoday.com/story/news/factcheck/2025/02/28/medicare-drug-price-trump-fact-check/80724101007/