WASHINGTON (AP) 鈥 President Donald Trump says he’ll sign an executive order on Monday that, if implemented, could bring down the costs of some medications 鈥 reviving a failed effort from his first term on an issue he’s talked up since even before becoming president.
The order Trump is promising will direct the to tie what pays for medications administrated in a doctor’s office to the lowest price paid by other countries.
鈥淚 will be instituting a MOST FAVORED NATION鈥橲 POLICY whereby the United States will pay the same price as the Nation that pays the lowest price anywhere in the World,鈥 the president posted Sunday on his social media site, pledging to sign the order on Monday morning at the White House.
鈥淥ur Country will finally be treated fairly, and our citizens Healthcare Costs will be reduced by numbers never even thought of before,鈥 Trump added.
His proposal would likely only impact certain drugs covered by Medicare and given in an office 鈥 think infusions that treat cancer, and other injectables. But it could potentially bring significant savings to the government, although the 鈥淭RILLIONS OF DOLLARS鈥 Trump boasted about in his post may be an exaggeration.
Medicare provides health insurance for roughly 70 million older Americans. Complaints about U.S. drug prices being notoriously high, even when compared with other large and wealthy countries, have long drawn the ire of both parties, but a lasting fix has never cleared Congress.
Under the planned order, the federal government would tie what it pays pharmaceutical companies for those drugs to the price paid by a group of other, economically advanced countries 鈥 the so-called 鈥渕ost favored nation” approach.
The proposal will face fierce opposition from the pharmaceutical industry.
It was a rule that Trump tried to adopt during his first term, but could never get through. He signed a in the final weeks of his presidency, but a later blocked the rule from going into effect under the Biden administration.
The pharmaceutical industry argued that Trump鈥檚 2020 attempt would give foreign governments the 鈥渦pper hand鈥 in deciding the value of medicines in the U.S.. The industry has long argued that forcing lower prices will hurt profits, and ultimately affect innovation and its efforts to develop new medicines.
Only drugs on Medicare Part B 鈥 the insurance for doctor’s office visits 鈥 are likely to be covered under the plan. Medicare beneficiaries are responsible for picking up some of the costs to get those medications during doctor’s visits, and for traditional Medicare enrollees there is no annual out-of-pocket cap on what they pay.
A by the Trump administration during its first term found that the U.S. spends twice as much as some other countries in covering those drugs. Medicare Part B drug spending topped $33 billion in 2021.
More common filled at a pharmacy would probably not be covered by the new order.
Trump’s post formally previewing the action came after he teased a 鈥渧ery big announcement鈥 last week. He gave no details, except to note that it wasn’t related to trade or the tariffs he has announced imposing on much of the world.
鈥淲e鈥檙e going to have a very, very big announcement to make 鈥 like as big as it gets,鈥 Trump said last week.
He came into his first term accusing pharmaceutical companies of 鈥済etting away with murder鈥 and complaining that other countries whose governments set drug prices were taking advantage of Americans.
On Sunday, Trump took aim at the industry again, writing that the 鈥淧harmaceutical/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 鈥榮uckers鈥 of America, ALONE.鈥
Referring to drug companies’ powerful lobbying efforts, he said that campaign contributions 鈥渃an do wonders, but not with me, and not with the Republican Party.鈥
鈥淲e are going to do the right thing,鈥 he wrote.
