On Monday, President Donald Trump enacted an executive order aimed at reducing drug prices in the US to levels comparable to those in other nations.
During a press conference held in the Roosevelt Room, Trump was joined by various officials, including Robert F. Kennedy, the Secretary of Health and Human Services, Dr. Mehmet Oz, the Administrator of the Center for Medicare and Medicaid Services, Dr. Jay Bhattacharya, who oversees the National Institute of Health, and Dr. Marty Makary, the Commissioner of Food and Drugs.
“Effective today, the US will stop subsidizing foreign healthcare,” Trump declared.
“We’ve been funding healthcare for other countries, paying significantly lower prices for the same medications while we, in the US, are charged so much more. It’s time to end the excessive profits by major pharmaceutical companies,” he continued.
A fact sheet from the White House specifies that the order will instruct Commerce Secretary Howard Luttonick and U.S. Trade Representative Jameson Greer to “prevent foreign nations from intentionally distorting market prices and engaging in practices that drive up US costs.”
Moreover, staff will communicate target prices to pharmaceutical companies, aiming to secure the “best deal” for Americans.
The order also seeks to create a system allowing Americans to buy drugs directly from manufacturers at what are considered “most favored nation” prices.
If a manufacturer fails to set prices at these favorable levels, Kennedy is empowered to take further actions as detailed in the fact sheet.
If a pharmaceutical company cannot provide the most favored nation pricing, the order mandates the Secretary of Health and Human Services to: (1) Propose rules enforcing the most favored nation pricing. (2) Implement other strategies to significantly lower prescription drug costs for consumers and combat anti-competitive practices.
Trump suggested that prices could “drop between 59 and 80, even 90 percent.” He noted that pharmaceutical firms generate over two-thirds of their profits in the US, despite its population making up only 4% of the global total.
