President Trump announced plans to sign an executive order aimed at reducing U.S. drug prices by implementing a "Most Favored Nation" (MFN) policy. This policy would direct the Department of Health and Human Services to negotiate lower drug prices with pharmaceutical companies, tying U.S. prices to the lowest prices paid by other countries.
The order is set to focus on Medicare Part B drugs, which include medications administered in a doctor's office, such as cancer treatments. Trump claims the policy could reduce costs by 30% to 80% and save the U.S. "TRILLIONS OF DOLLARS."
This latest order is a continuation of Trump's efforts from his first term to address the high cost of U.S. drugs via price controls. In 2020, he signed a similar executive order aimed at tying U.S. drug prices to international benchmarks, but the proposal faced significant opposition from the pharmaceutical industry. Critics argued that such a policy would harm innovation and reduce access to new medications. Trump's 2020 attempt was blocked by a federal court after he left office, preventing its implementation under President Biden.
The MFN policy is likely to face similar resistance from the pharmaceutical industry, which argues that forcing lower prices could stifle innovation, leading to fewer new medicines and potentially harming the U.S.'s role as a global leader in drug development.
Pharmaceutical companies contend that the policy would grant foreign governments excessive influence over U.S. drug pricing, undermining the ability of the U.S. market to set fair and competitive prices. Despite this opposition, the proposal reflects ongoing frustrations with U.S. drug pricing, a long-standing issue that has drawn bipartisan criticism.
Head to the link in bio for the full story
