Executive Order 13939-Lowering Prices for Patients by Eliminating Kickbacks to Middlemen
Issued 2020-07-24 by Donald J. Trump
Plain-English Overview
AI-generated summary explaining what this action does, who it affects, and why it matters
President Donald J. Trump issued Executive Order 13939, titled "Lowering Prices for Patients by Eliminating Kickbacks to Middlemen," on July 23, 2020. This executive action directs the Secretary of Health and Human Services to complete a rulemaking process. This process aims to change federal regulations by removing certain retrospective price reductions or payments that drug manufacturers provide
AI-generated summary for educational purposes
Constitutional Analysis
How this action fits (or doesn't) within Article II authority and existing law
Executive Order 13939 addresses "Executive Order 13939-Lowering Prices for Patients by Eliminating Kickbacks to Middlemen". The President's stated reasoning: "lower the patient s out-of-pocket costs, and that would permit the use of certain bona fide PBM service fees." Executive orders are a long-established exercise of presidential power, used by every President since George Washington. They are grounded in Article II of the Constitution, which vests executive power in the President and directs them to "take Care that the Laws be faithfully executed."
Executive orders cannot create new law, contradict existing federal statutes, or exceed the President's constitutional authority. The legitimacy of any specific order depends on whether it operates within statutory authority Congress has delegated, directs the executive branch on matters within its constitutional purview, or attempts to substitute executive policy for legislative choices. Courts can and do review executive orders for conformity with the Constitution and federal law.
Official Summary
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