Trump Aims to Cut US Drug Prices by Targeting International Price Disparities | CNN Politics

President Donald Trump is set to sign a new executive order aimed at tackling high drug prices in the U.S. This move targets "unreasonable and discriminatory practices" by other countries that affect prices for American consumers. The order will cover many medications available in both commercial markets and government programs like Medicare and Medicaid.

The goal is clear: lower drug prices quickly. If prices remain high, the administration will explore several options to enforce reductions. One proposed strategy calls for the Department of Health and Human Services to negotiate these prices directly. If no progress is made, they may implement a "Most Favored Nation" rule, ensuring that the U.S. pays the lowest price available among peer countries.

Trump’s plan is more ambitious than his earlier attempt to enforce similar policies during his first term, which faced legal hurdles and was later abandoned by President Biden in 2021. At the time, Medicare was not allowed to negotiate prices. However, this changed with the 2022 Inflation Reduction Act, granting Medicare the power to negotiate for a limited number of drugs each year.

Still, there are questions about how soon Americans will benefit from these price cuts. The authority of the U.S. government to influence drug pricing abroad is also uncertain. In a recent post on Truth Social, Trump claimed that drug prices could drop by 59%, following another announcement where he promised reductions of 30% to 80% globally.

Historically, Americans have faced much higher medication costs than other nations. A 2022 HHS report revealed that drug prices in the U.S. were nearly 2.78 times higher than in comparable countries. For brand-name drugs, this disparity increased to over 3.22 times.

With the ongoing conversation about healthcare costs, many are tuning in to see if this new executive order will bring about the promised changes. Social media buzz reflects a mix of skepticism and hope. As lawmakers and health officials navigate these complex waters, the American public watches closely, eager for relief from soaring medication prices.

For more details, you can check the HHS report for insights on drug pricing in the U.S. compared to other countries.

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