Trump begins rolling back Biden-era healthcare and policy reforms

USA – On his first day in office, President Trump issued an “initial rescissions order” aimed at dismantling key Biden-era policies, including measures related to healthcare and artificial intelligence (AI) safeguards.

The executive order, described as targeting “deeply unpopular, inflationary, illegal, and radical” initiatives, marks a swift reversal of several policies enacted under the Biden administration.

Affordable Care Act rollbacks

One of Trump’s first actions was to rescind an executive order that had expanded the Affordable Care Act (ACA), also known as Obamacare.

The Biden administration’s initiatives had broadened enrollment windows, increased eligibility criteria, provided federal subsidies to reduce premiums, and strengthened protections for patients with pre-existing conditions.

These measures were credited with helping 24 million people enroll in the ACA this year.

Critics, particularly Democrats, have called this move an “attack” on affordable healthcare, accusing the Trump administration of prioritizing “ripping away affordable healthcare coverage for tens of millions of Americans and screwing over people with preexisting conditions.”

The impact of removing these incentives on ACA enrollment will be closely monitored.

Medicare and Medicaid drug pricing initiatives halted

Trump also targeted ongoing pilot studies under the Centers for Medicare & Medicaid Services (CMS).

These studies aimed to explore payment and service delivery models that could reduce drug costs for Medicare and Medicaid beneficiaries.

Specifically, they sought to address prices for drugs granted accelerated FDA approval, provide funding models for expensive cell and gene therapies, and introduce a flat US $2 copay for generic medicines treating common illnesses.

The studies, which had yet to begin, were suspended, raising concerns about the future of cost-saving initiatives for federal health insurance programs.

Artificial intelligence safeguards reversed

The Trump administration also rescinded an executive order requiring the Department of Health and Human Services (HHS) to develop safety, security, and equity standards for artificial intelligence in healthcare.

Biden’s order had mandated that AI developers share algorithm training data with the federal government if their technologies posed risks to public health and safety.

It also proposed the establishment of a safety program to monitor and address harms caused by unsafe healthcare practices involving AI.

Key Biden healthcare policies left untouched—for now

Notably, Trump has not yet reversed some of Biden’s signature healthcare reforms, including Medicare drug pricing negotiation powers, a US $35 monthly cap on insulin copays, and a US $2,000 annual cap on out-of-pocket prescription drug costs.

Broader policy shifts

Beyond healthcare, Trump’s executive order called for the removal of diversity, equity, and inclusion measures across federal agencies, placing employees hired under these policies on immediate leave.

Additionally, it proposed a 10% tariff on goods imported from China starting February 1 and a controversial renaming of the Gulf of Mexico to the “Gulf of America.”

In a more contentious move, Trump revoked automatic citizenship for individuals born within U.S. borders, prompting lawsuits from over 20 states.

Trump justified his actions in the executive order, stating, “It is the policy of the US to restore common sense to the federal government and unleash the potential of the American citizen. The revocations within this order will be the first of many steps the US federal government will take to repair our institutions and our economy.”