The U.S. Department of Health and Human Services (HHS) today announced immediate steps to implement President Trump’s “Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients” Executive Order, a key initiative aimed at significantly lowering healthcare costs for Americans.
The Department has identified specific targets for pharmaceutical manufacturers to meet, ensuring Americans no longer pay more for medications than patients in other economically comparable countries.
This policy builds on President Trump’s broader reforms to eliminate what the administration calls “global freeloading” on American patients.
READ: Indiana Rep Introduces Bill To Protect US Infrastructure From Chinese Threats
“For too long, Americans have been forced to pay exorbitant prices for the same drugs that are sold overseas for far less,” said HHS Secretary Kennedy. “That ends today. We expect pharmaceutical manufacturers to fulfill their commitment to lower prices for American patients, or we will take action to ensure they do.”
HHS anticipates that manufacturers will commit to aligning U.S. pricing for all brand products without generic or biosimilar competition with the lowest price found in a set of economic peer countries.
The Most-Favored-Nation (MFN) target price will be the lowest price in an OECD country with a Gross Domestic Product (GDP) per capita of at least 60 percent of the U.S. GDP per capita. The administration states these targets are expected to drastically reduce U.S. drug prices, which are often three to five times higher than those abroad, while preserving innovation by ensuring Americans bear no greater financial burden than patients in other countries.
The United States, with less than five percent of the world’s population, currently funds roughly 75% of global pharmaceutical profits.
The Trump admin contends that drug manufacturers discount their products to gain access to foreign markets, then subsidize those discounts through high prices charged in America, effectively making American patients subsidize drug manufacturer profits and foreign health systems.
READ :Dems’ Antisemitism Problem Could Help GOP Pick Up New York Seat
This executive action expands on efforts from Trump’s first term to reduce price disparities, now including Medicaid in addition to Medicare. The administration notes that a similar policy implemented during President Trump’s first term was later rescinded, and criticizes the Biden administration’s approach to drug price negotiation.
Trump recently signed another Executive Order aimed at lowering drug prices further, including providing massive discounts to low-income patients, facilitating importation programs, and increasing the availability of generic and biosimilar medicines.
He is also reportedly working to make drug prices radically transparent, building on previous efforts.
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Connect with us: Follow the Tampa Free Press on Facebook and Twitter for breaking news and updates.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox.
