How President Trump’s New Plan Aims to Reduce Drug Prices for Americans and Combat Foreign Exploitation of U.S. Pharmaceutical Innovations

Lowering Drug Prices for Americans: Today, President Trump signed an Executive Order aimed at making prescription drugs more affordable for Americans and taxpayers. The goal is to align U.S. drug prices with those in other comparable countries.

• The Order instructs the U.S. Trade Representative and the Secretary of Commerce to ensure foreign countries don’t manipulate prices that harm U.S. consumers.
• It calls for clear price targets from pharmaceutical companies, ensuring that America— the world’s largest drug purchaser—gets the best possible deals.
• The Secretary of Health and Human Services will set up a system allowing Americans to buy drugs directly from manufacturers at “Most-Favored-Nation” prices, cutting out middlemen.
• If companies fail to comply, the Order empowers the Secretary to propose rules enforcing these pricing standards and to take measures to dramatically lower drug costs for consumers.

Improving Deals for Americans: President Trump aims to tackle high drug prices that often leave Americans paying significantly more than citizens in other countries.

• Recent studies show that Americans pay more than three times for brand-name drugs compared to other wealthy nations, even after accounting for U.S. discounts.
• The U.S. has about 5% of the global population yet covers around 75% of global pharmaceutical profits.
• Drug makers offer discounts in other countries but offset these costs through high American prices, meaning U.S. consumers effectively subsidize lower prices abroad.
• In his first term, President Trump initiated action to ensure seniors on Medicare wouldn’t pay more than their counterparts in other countries, but the Biden Administration rolled back these measures.
• Moreover, the Biden Administration’s price negotiations often result in prices that are 78% higher than similar countries.

Fulfilling Promises to Prioritize Patients: President Trump continues his commitment to making prescription drugs affordable for Americans and taxpayers.

• This new Order builds on previous efforts from President Trump’s first term to address price disparities and extends these efforts to include Medicaid alongside Medicare.
• Recently, the President signed another Executive Order to enhance drug affordability, including significant discounts for low-income patients and measures to increase generic drug availability.
• Transparency in drug pricing is also a priority, with a recent Executive Order aimed at making pricing clearer for consumers.
• President Trump has been vocal about his mission to reduce high drug costs: “In countless cases, our citizens are paying far more than people in other countries for the same medication, putting American patients at a disadvantage.”

In recent years, discussions about drug pricing have intensified on social media, with many Americans sharing their struggles and calling for change. According to a 2021 survey, over 70% of Americans support price negotiation for Medicare drugs. This issue resonates widely, showing the public’s demand for fairer pricing practices.

By taking these steps, the administration strives to reshape the pharmaceutical landscape and ensure that American patients are no longer left paying the highest prices in the world.

For more on recent drug price trends and policies, check out this HealthCare.gov report.

Source link