President Donald Trump announced plans to sign a major executive order on Monday aimed at drastically reducing prescription drug and pharmaceutical prices in the U.S. The new policy is expected to bring prices down by an estimated 30% to 80%, benefiting millions of Americans.
Trump’s Promise of Reduced Drug Prices
Trump made the announcement on Sunday via Truth Social, expressing frustration over the high cost of prescription drugs in the U.S. compared to other countries.
He pointed out that drugs in the U.S. can sometimes be five to ten times more expensive than the same drugs sold in other countries, even though they are produced in the same labs and factories.
“For many years the World has wondered why Prescription Drugs and Pharmaceuticals in the United States of America were SO MUCH HIGHER IN PRICE THAN THEY WERE IN ANY OTHER NATION,” Trump wrote.
He criticized pharmaceutical companies for claiming high costs were due to research and development expenses but insisted that American consumers should not bear these costs alone. He also noted that his administration and the Republican Party would act in the best interest of the people, unlike past administrations.
A Historic Executive Order
Trump described the upcoming executive order as one of the most important actions in the history of the country. He outlined a “Most Favored Nation’s Policy” in which the U.S. would pay the same price for drugs as the country with the lowest price.
This policy, according to Trump, would ensure fairness and drastically reduce healthcare costs for American citizens, saving the country trillions of dollars.
The new policy is expected to impact global drug pricing, with the president promising that it would bring fairness to America for the first time in many years. Trump also emphasized that the order would help tackle high healthcare costs that have been a significant burden on many American families.
Previous Efforts and Ongoing Initiatives
Trump’s latest order follows a previous executive action from last month, which aimed to standardize Medicare payments for prescription drugs, including cancer treatments, to help lower prices for patients.
This earlier order could reduce prices for patients by as much as 60%, with certain drug payments now aligned with what hospitals pay for the same medications, potentially lowering costs by up to 35%.
In addition, the previous order took steps to lower insulin prices, making it more affordable for low-income or uninsured patients, as well as cutting the cost of injectable epinephrine for allergic reactions to just $15.
Trump’s new initiative also seeks to help states reduce prescription drug prices through importation programs and by securing better deals on sickle-cell medications within Medicaid.
Rising Drug Prices and Future Proposals
Drug prices have been rising sharply in recent years. According to the Department of Health and Human Services, prescription drug prices increased by more than 15% from January 2022 to January 2023, with an average price of $590 per drug product. Nearly half of the 4,200 prescription drugs included in the price increase list saw prices rise faster than the rate of inflation.
Under his first term, Trump also worked to limit Medicaid prescription drug plans for insulin to $35, addressing the rising cost of diabetes medication.
Trump’s efforts to tackle the rising cost of prescription drugs are expected to have far-reaching effects on U.S. healthcare, with the new executive order adding another step toward making medications more affordable for millions of Americans.