Trump signs executive order aimed at lowering drug prices for Americans

President Donald Trump made a bold declaration on Monday, stating that the U.S. “will no longer tolerate profiteering and price gouging from Big Pharma.” He signed an executive order implementing what his administration is calling “most favored nations drug pricing,” a move that he believes will significantly reduce prescription drug prices for Americans.

“The principle is simple – whatever the lowest price paid for a drug in other developed countries, that is the price that Americans will pay,” Trump announced at the White House. He emphasized that some prescription drug prices could see reductions of up to 50 to 80 to 90%. This new policy aims to end the practice of the U.S. subsidizing the healthcare costs of foreign countries, where the same drugs are sold for a fraction of the price paid by Americans.

Trump highlighted the disproportionate profits that pharmaceutical companies make in the U.S., despite the country having only 4% of the world’s population. He emphasized that it is not fair for Americans to bear the brunt of high drug prices while other countries benefit from lower costs.

The executive order directs the U.S. Trade Representative and Secretary of Commerce to take action against foreign countries engaged in practices that undercut market prices and contribute to price hikes in the U.S. The Secretary of Health and Human Services will establish a mechanism for American patients to purchase drugs directly from manufacturers at a ‘Most-Favored-Nation’ price, bypassing intermediaries.

Health and Human Services Secretary Robert F. Kennedy Jr. expressed his surprise and gratitude for the new policy, stating that he never thought such a change would occur in his lifetime. He commended President Trump for standing up for the American people and addressing the issue of high drug prices.

However, the Pharmaceutical Research and Manufacturers of America (PhRMA) trade group has opposed the order, labeling it as a “bad deal for American patients.” The group’s president, Stephen Ubl, argued that importing foreign prices could harm American patients and jeopardize investments in innovative medicines in the U.S.

Despite opposition from the pharmaceutical industry, Trump remains steadfast in his commitment to lowering drug prices for Americans. He believes that addressing the underlying reasons for high drug costs, such as the markups by PBMs, insurers, and hospitals, is crucial to reducing the financial burden on patients.

In conclusion, President Trump’s executive order on drug pricing is a significant step towards making healthcare more affordable for Americans. By implementing a ‘most favored nations’ pricing model, the administration aims to ensure that Americans are not overpaying for prescription drugs compared to other developed countries. This policy shift has the potential to bring about substantial savings for patients and reduce the influence of Big Pharma on drug pricing in the U.S.