Executive Order 13938 · Signed Jul 24, 2020

85 FR 45757 · Published Jul 29, 2020 · Effective on signing

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Increasing Drug Importation To Lower Prices for American Patients

prescription drug pricesdrug importationinsulin accesspharmaceutical regulationconsumer health costs

Signed by President Donald Trump

The order directs the Secretary of Health and Human Services to expand safe access to lower-cost imported prescription drugs through individual waivers, insulin re-importation authorization, and completing rulemaking to allow importation from Canada.

It targets the persistent gap between what Americans pay for prescription drugs and what consumers in other developed countries pay for the same products made in the same facilities.

What this order does

What it orders

The order directs the Secretary of Health and Human Services to take three specific actions to expand drug importation: grant waivers to individuals allowing importation of prescription drugs when it poses no additional public safety risk and lowers costs; authorize re-importation of insulin products upon a finding that it is required for emergency medical care; and complete the pending rulemaking process to implement the proposed rule allowing importation of certain prescription drugs from Canada under the Federal Food, Drug, and Cosmetic Act.

The order does not itself change any law or immediately permit importation — each action is conditioned on findings, waivers, or completed rulemaking by HHS. It also includes standard general provisions clarifying that nothing in the order impairs existing agency authority, creates enforceable individual rights, or obligates spending beyond available appropriations.

Who it affects

American patients who purchase prescription drugs, particularly insulin-dependent patients who may benefit from re-importation authorization, and importers or individuals seeking waivers. Pharmacies and drug manufacturers operating in Canada and other lower-cost markets may also be affected by expanded importation pathways.

Why it matters

If HHS completes the required rulemaking and grants waivers, American consumers — especially those buying insulin — could gain access to the same brand-name drugs at lower prices. Actual savings depend on future agency action rather than anything the order itself immediately changes.

What must happen and when

How the order is supposed to work

The order works in three parallel tracks: individual importation waivers granted case-by-case by HHS when safety and cost conditions are met; a specific insulin re-importation finding the Secretary must make under an existing FDCA emergency medical care provision; and completion of a rulemaking process that was already proposed but not finalized for broader Canadian importation. No single action takes immediate legal effect — each requires HHS to exercise discretion, complete administrative procedures, or make statutory findings first. No reporting deadlines or OMB oversight mechanisms are specified.

Actions and deadlines

  • Facilitate grants of individual waivers allowing importation of prescription drugs when safe and cost-loweringNo deadline specified
  • Authorize re-importation of insulin products upon finding it is required for emergency medical careNo deadline specified
  • Complete the rulemaking process for the proposed rule allowing importation of certain prescription drugs from CanadaNo deadline specified

Agencies directed to act

Department of Health and Human Services

Authority and reach

Authorities cited

Article II

Constitutional grant of executive power to the President.

21 U.S.C. 384(j)(2)

FDCA provision allowing the HHS Secretary to grant individual waivers of the drug importation prohibition.

21 U.S.C. 381(d)

FDCA provision allowing re-importation of insulin when required for emergency medical care.

21 U.S.C. 384(b)-(h)

FDCA provisions governing the framework for importing certain prescription drugs from Canada.

Executive Order

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Executive Order 13938: Increasing Drug Importation To Lower Prices for American Patients | EO Reporter