President Donald Trump announced Sunday evening that he will be signing an executive order Monday that will force pharmaceutical companies to match the lowest global prices on prescription drugs for American consumers.
“I will be instituting a most favored nation’s policy whereby the United States will pay the same price as the nation that pays the lowest price anywhere in the world,” Trump declared.
In a lengthy Truth Social post, he expanded on the reasoning behind the decision:
For many years the World has wondered why Prescription Drugs and Pharmaceuticals in the United States of America were SO MUCH HIGHER IN PRICE THAN THEY WERE IN ANY OTHER NATION, SOMETIMES BEING FIVE TO TEN TIMES MORE EXPENSIVE THAN THE SAME DRUG, MANUFACTURED IN THE EXACT SAME LABORATORY OR PLANT, BY THE SAME COMPANY???
It was always difficult to explain and very embarrassing because, in fact, there was no correct or rightful answer. The Pharmaceutical/Drug Companies would say, for years, that it was Research and Development Costs, and that all of these costs were, and would be, for no reason whatsoever, borne by the “suckers” of America, ALONE.
Campaign Contributions can do wonders, but not with me, and not with the Republican Party. We are going to do the right thing, something that the Democrats have fought for many years.
Therefore, I am pleased to announce that Tomorrow morning, in the White House, at 9:00 A.M., I will be signing one of the most consequential Executive Orders in our Country’s history.
Prescription Drug and Pharmaceutical prices will be REDUCED, almost immediately, by 30% to 80%. They will rise throughout the World in order to equalize and, for the first time in many years, bring FAIRNESS TO AMERICA!
I will be instituting a MOST FAVORED NATION’S POLICY whereby the United States will pay the same price as the Nation that pays the lowest price anywhere in the World.
Our Country will finally be treated fairly, and our citizens Healthcare Costs will be reduced by numbers never even thought of before. Additionally, on top of everything else, the United States will save TRILLIONS OF DOLLARS.
Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN!
Trump also hinted that this announcement was among the most significant of his career on Truth Social.
“My next TRUTH will be one of the most important and impactful I have ever issued. ENJOY!” he posted just prior to the announcement.
The proposal primarily targets high-cost treatments provided through Medicare, including specialty infusions and injectable medications used for serious illnesses such as cancer. While its scope is limited, the financial implications for the government could be dramatic.
Medicare currently insures close to 70 million Americans aged 65 and older. For years, lawmakers on both sides of the aisle have criticized the disproportionately high cost of U.S. prescription drugs, but bipartisan frustration has yet to yield a legislative breakthrough.
Under Trump’s plan, prices paid by Medicare would be benchmarked against those paid by economically comparable nations — the foundation of the “most favored nation” concept.
Commerce Secretary Howard Lutnick, in a recent interview on Newsmax, foreshadowed this move.
“The United States of America pays for drugs, and the rest of the world free rides,” Lutnick told “Rob Schmitt Tonight” in an exclusive interview. “You know how you can understand the rest of the world?
“We pay for the drug, and they pay the copay.
“They’re paying like the $10, $20, $30.”
Still, the pharmaceutical industry is expected to resist the policy aggressively.
Trump had pushed for a similar regulation during his presidency, signing an executive order near the end of his term. However, that effort was derailed by a court decision, and the policy was never implemented under the Biden administration.
An internal report from the Trump White House found that U.S. Medicare spending on these types of drugs was twice as high as in other developed nations. In 2021 alone, Medicare Part B expenditures on these drugs exceeded $33 billion.
{Matzav.com}