Trump’s Proposal Will Connect Certain Drug Prices to State Payments

Updated May 12th: Additional insights Executive Order and its implications .

On Monday, President Trump is set to sign an executive order aimed at reducing various drug prices in the US by aligning them with what other prosperous nations pay. This was reported by True Social on Sunday evening.

He noted that his proposal cannot alter federal policies, describing it as the “most favored nation” pricing approach. While specifics regarding the types of insurance covered or the number of drugs affected were not shared, Trump emphasized that the US must secure the lowest prices compared to its counterparts.

“In the end, our nation will be treated equitably and citizens’ healthcare expenses will decrease significantly,” he stated in a social media update.

This kind of plan is likely to face legal challenges, and it remains uncertain whether it will succeed without input from Congress.

During his first term, Trump attempted to implement a similar Medicare strategy, targeting 68 million Americans aged 65 and older or those with disabilities. This plan would have focused on 50 medications administered in healthcare settings funded by Medicare. However, it was blocked by a federal court, which ruled that the administration bypassed necessary procedures in policy formulation.

The pharmaceutical sector strongly opposes this concept, arguing it may severely impact their profit margins. They have ramped up lobbying efforts against the proposal as discussions revive in Washington. Industry leaders caution that such measures will hinder research funding and limit patient access to innovative treatments.

“Every form of government pricing is detrimental to patients in America,” declared Alex Schriver, a staff member of a prominent pharmaceutical lobbying organization. He added: “Policymakers should prioritize reforming flaws in the US system instead of adopting ineffective strategies from abroad.”

Trump’s support for these ideas distinguishes him from the majority of Republicans, who are generally hesitant about government pricing. Meanwhile, Democrats are advancing a similar proposal.

Amiet Salpatwali, a pharmaceutical policy specialist at Harvard Medical School, noted that Trump is capitalizing on ideas that resonate with populist sentiments.

Trump has long expressed concerns about the significant disparity in drug prices that the US faces compared to other wealthy nations. He is correct; in the United States, the cost of branded medications is, on average, three times higher than that in peer countries.

This is despite the fact that a substantial portion of the research leading to new drugs is conducted in American laboratories and hospitals.

Pharmaceutical manufacturers generate a significant majority of global profits from US sales, typically developing their strategies with the US market in mind.

The pharmaceutical industry contends that the elevated prices in the US provide additional advantages. Analyses funded by the industry have indicated that US patients tend to access medications more swiftly and face fewer insurance restrictions compared to their counterparts in other countries.