President Donald Trump is preparing to unveil a significant policy change that could reshape the American pharmaceutical industry through substantial price reductions.
According to Fox News, Trump announced plans to sign an executive order on Monday that will reduce prescription drug and pharmaceutical prices by 30% to 80% "almost immediately" through implementation of a "most favored nation's policy."
The executive order aims to ensure Americans pay the same prices for medications as countries with the lowest costs globally. Trump criticized pharmaceutical companies' longstanding practice of charging U.S. consumers significantly higher prices compared to other nations, sometimes up to ten times more for identical drugs manufactured in the same facilities.
The president directly challenged drug companies' traditional justification that research and development costs were solely borne by American consumers. He suggested that campaign contributions have historically influenced pricing policies but emphasized this would not affect his administration's approach.
Trump positioned the executive order as a decisive move to address an issue he claims Democrats have struggled with for years. The signing ceremony is scheduled for Monday at 9:00 A.M. in the White House. The president acknowledged that while drug prices might increase globally under this policy, it would bring "fairness to America" for the first time in many years.
This latest executive order follows another significant healthcare initiative signed last month that standardized Medicare payments for prescription drugs, particularly benefiting cancer patients. The previous order aimed to reduce costs by up to 60% regardless of treatment location.
The White House detailed plans to match Medicare payments for certain prescription drugs to hospital purchase prices, potentially lowering government costs by 35%. The initiative also addresses insulin accessibility, targeting prices as low as 3 cents for low-income and uninsured patients.
Injectable epinephrine for allergic reactions could become available for as little as $15 plus a small administrative fee under the new policies. Trump shared his perspective on the pharmaceutical industry's pricing practices:
For many years the World has wondered why Prescription Drugs and Pharmaceuticals in the United States States of America were SO MUCH HIGHER IN PRICE THAN THEY WERE IN ANY OTHER NATION, SOMETIMES BEING FIVE TO TEN TIMES MORE EXPENSIVE THAN THE SAME DRUG, MANUFACTURED IN THE EXACT SAME LABORATORY OR PLANT, BY THE SAME COMPANY??? It was always difficult to explain and very embarrassing because, in fact, there was no correct or rightful answer.
The Department of Health and Human Services, under Secretary Robert F. Kennedy Jr.'s leadership, will seek public comment on the Medicare Drug Price Negotiation Program. This program was originally authorized under the Biden administration's Inflation Reduction Act.
Recent data from the Department of Health and Human Services reveals substantial increases in prescription drug prices. Between January 2022 and January 2023, prices rose more than 15%, reaching an average of $590 per drug product.
The administration's previous efforts to control drug prices included implementing a $35 cap on Medicaid prescription drug plans for insulin. This new executive order expands upon these earlier initiatives.
The executive order represents President Trump's latest effort to address rising prescription drug costs in America. The administration aims to reduce healthcare expenses through a combination of price negotiations, international price matching, and targeted assistance for specific medications.
The comprehensive approach includes facilitating state importation programs and enhancing state-level negotiations for Medicaid medications. These measures build upon existing reforms while introducing new mechanisms to achieve unprecedented price reductions in the pharmaceutical sector.
