Trump Plans Executive Order to Lower Prescription Prices
On Sunday, President Donald Trump announced he would sign an executive order aimed at reducing prescription drug prices, aligning them with what is paid in other wealthy countries.
In a message shared about the Truth Society, Trump indicated that he would sign the order on Monday morning, which focuses on “most preferred country” pricing or international reference pricing.
The U.S. is known for having some of the highest prescription drug prices globally, often nearly three times higher than in other developed nations. While Trump expressed a desire to bridge this gap, he did not elaborate on specific methods in his announcement.
“They will become equal, and only rise everywhere else to ensure fairness for Americans for the first time in years!” he stated.
He further remarked, “I will implement policies ensuring that the United States is the preferred country paying the same prices as the lowest ones worldwide.”
According to four industry lobbyists briefed by the White House, drugmakers are hoping the forthcoming order will mainly target the Medicare health insurance program. Reports suggest that this policy is indeed being considered.
Pharmaceutical companies are eager for the order to extend its reach beyond the drugs currently affected by the Inflation Reduction Act from former President Joe Biden, which is set to allow Medicare to negotiate prices for ten drugs, starting next year, with more negotiations anticipated later this year.
Alex Schliver, a spokesperson for a prominent U.S. drug company lobbying group, reacted by asserting, “All forms of government pricing are detrimental to American patients,” in response to Trump’s impending executive order.
This isn’t the first attempt by Trump to link drug prices with payments made in other nations. During his first term, a court blocked a similar international reference pricing program.
Five years ago, his administration estimated that the proposal could save taxpayers over $85 billion across seven years, significantly reducing drug expenses for the U.S.
