President Donald J. Trump today signed an Executive Order aimed at significantly lowering prescription drug prices for Americans and taxpayers by aligning them with costs in other developed nations and stopping what the administration terms “foreign free-riding” on U.S. pharmaceutical innovation.
According to a fact sheet released by the White House, the order is intended to ensure that Americans’ prescription drug prices are comparable to those of other countries.
The Executive Order directs the U.S. Trade Representative and the Secretary of Commerce to take action against foreign countries engaged in practices that the administration alleges unfairly undercut market prices abroad and drive price increases in the United States.
READ: Texas AG Paxton Leads Sen. Cornyn By Double Digits In Senate Race, Poll Shows
Furthermore, the order instructs the administration to communicate price targets to pharmaceutical manufacturers, asserting that the United States, as the world’s largest purchaser and funder of prescription drugs, should receive the most favorable prices.
A key component of the order is a directive for the Secretary of Health and Human Services (HHS) to establish a mechanism allowing American patients to purchase drugs directly from manufacturers at a “Most-Favored-Nation” (MFN) price, bypassing traditional intermediaries.
The fact sheet states that if drug manufacturers fail to offer MFN pricing, the order mandates the HHS Secretary to propose rules implementing such pricing and take other “aggressive measures” to reduce costs for consumers and address anti-competitive practices.
READ: DOJ Launches Civil Rights Investigation Into Washington State Clergy Reporting Law
The administration argues that Americans currently pay significantly higher prices for brand-name drugs than residents of other OECD nations, citing data suggesting prices are more than three times higher, even after accounting for U.S. discounts. The fact sheet claims the United States, with less than five percent of the global population, funds approximately 75% of worldwide pharmaceutical profits.
According to the White House, drug manufacturers provide discounts to access foreign markets and then subsidize those discounts through high prices charged in America, effectively making U.S. consumers subsidize foreign healthcare systems and drug company profits.
The White House emphasized that the Executive Order builds on President Trump’s previous efforts to address price disparities and expands these initiatives to include Medicaid, in addition to Medicare. The fact sheet also referenced recent Executive Orders focused on providing discounts to low-income patients, facilitating importation, increasing the availability of generics and biosimilars, and enhancing price transparency.
READ: Scott Bessent Tells CNBC Why He Thinks China Is ‘Serious About’ Curbing Fentanyl Flow Into US
“In case after case, our citizens pay massively higher prices than other nations pay for the same exact pill, from the same factory, effectively subsidizing socialism abroad with skyrocketing prices at home.” said Trump. “So we would spend tremendous amounts of money in order to provide inexpensive drugs to another country. And when I say the price is different, you can see some examples where the price is beyond anything — four times, five times different.”
The administration stated that the order delivers on President Trump’s promise to prioritize American patients and taxpayers in accessing affordable prescription drugs.
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.
