President Donald Trump introduced sweeping changes to prescription drug pricing during a pivotal White House meeting attended by top health officials.
According to Breitbart, Trump signed an executive order on Monday aimed at dramatically reducing American drug prices to match the lower rates paid by other nations, potentially cutting costs by up to 90 percent.
The executive order represents a major shift in U.S. pharmaceutical pricing policy, with Trump declaring an end to American subsidization of other countries' healthcare costs. The president emphasized that pharmaceutical companies currently generate over two-thirds of their profits from the United States despite the country representing only four percent of the world's population.
Health and Human Services Secretary Robert F. Kennedy Jr., Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz, NIH Director Dr. Jay Bhattacharya, and FDA Commissioner Dr. Marty Makary joined Trump for the Roosevelt Room announcement. Their presence demonstrated unified support from key health agencies for the administration's drug pricing initiative.
Trump delivered a stern message to pharmaceutical companies during the signing, addressing the industry's pricing practices head-on:
Starting today, the United States will no longer subsidize the health care of foreign countries, which is what we were doing. We were subsidizing others' health care–countries where they paid a small fraction for the same drug that what we pay many, many times more for, and we'll no longer tolerate profiteering and price gouging from Big Pharma.
The executive order tasks Commerce Secretary Howard Lutnick and U.S. Trade Representative Jameson Greer with investigating foreign nations' pricing practices that may unfairly impact U.S. markets.
The order introduces a "Most Favored Nation" pricing mechanism, allowing Americans to purchase medications directly from producers at internationally competitive rates. This approach aims to leverage global market forces to benefit U.S. consumers.
If pharmaceutical companies fail to comply with the new pricing guidelines, the order empowers Secretary Kennedy to implement mandatory price controls. These measures include proposing rules for most-favored-nation pricing and taking additional steps to combat anticompetitive practices.
The White House fact sheet outlines specific enforcement mechanisms to ensure manufacturer compliance. These tools provide federal officials with considerable authority to intervene if drug companies resist the pricing reforms.
This executive action marks Trump's most aggressive move yet to address prescription drug costs, targeting what he describes as systemic pricing inequities. The order establishes clear expectations for pharmaceutical manufacturers while providing federal agencies with enforcement authority.
The initiative builds on previous administration efforts to reduce healthcare costs for Americans. Industry experts anticipate significant pushback from pharmaceutical companies, though the order's broad scope and enforcement provisions demonstrate the administration's commitment to achieving meaningful price reductions.
Trump's executive order represents a determined effort to transform prescription drug pricing in the United States through federal intervention and market reforms. The directive aims to eliminate the disparity between domestic and international drug prices by leveraging government authority and market mechanisms.
The success of this initiative will depend on effective implementation by federal agencies and compliance from pharmaceutical manufacturers. With potential price reductions of 59 to 90 percent projected, the order could dramatically improve medication affordability for millions of Americans if fully realized.
