Washington: US President Donald Trump announced late Sunday that he will sign a sweeping executive order aimed at dramatically reducing prescription drug prices in the US by as much as 80%, declaring it one of the "most consequential Executive Orders in our Country's history."
According to Anadolu Agency, Trump stated that this executive order will implement a "Most Favored Nation's Policy," ensuring the US pays no more than the lowest price charged for the same drug in any other developed country. The order is scheduled for signing Monday morning at 9 a.m. (1300GMT) in the White House. Trump emphasized that prescription drug and pharmaceutical prices will be reduced by 30% to 80% almost immediately. He also mentioned that this move would bring fairness to American drug pricing for the first time in many years.
The policy mirrors a previous effort from Trump's first term, which attempted to align Medicare Part B drug payments with prices in other nations. That plan faced legal challenges and was blocked in court following a lawsuit from the pharmaceutical industry. Trump's revived strategy, initially reported by Politico and previewed last week by NBC News, aims to address pricing disparities between the US and countries such as Germany, the UK, and Canada.
Health policy experts suggest the move could save Americans billions, though they caution about industry resistance. Arthur Caplan, head of the medical ethics division at NYU Langone Medical Center, expressed support for addressing what is perceived as an emergency. Caplan noted the inconsistency in drug pricing and the higher charges faced by Americans. Stacie Dusetzina, a professor at Vanderbilt University, expressed skepticism about the policy's durability, referencing challenges faced by the previous version of the policy in 2020.
Polls indicate public support for the initiative. A Kaiser Family Foundation (KFF) survey revealed that over three-quarters of US adults find drug prices unaffordable. Tricia Neuman, executive director of KFF's Medicare policy program, noted the popularity of the idea of ensuring the US pays no more than similar countries, but she anticipated strong opposition from the pharmaceutical industry.
Trump underscored that his plan aims not only at fairness but also at national savings. He asserted that healthcare costs for American citizens will be reduced significantly, and the United States will save trillions of dollars.