Trump announces ‘important and impactful’ executive command
(MENAFN) US President Donald Trump has announced plans to sign a major executive order aimed at drastically reducing prescription drug prices in the country, describing it as potentially one of the most significant in American history.
In a Sunday post on his Truth Social platform, Trump hinted at an imminent and impactful announcement. Hours later, he revealed that he would be signing an executive order on Monday at 9 a.m., introducing a "Most Favored Nation" policy. This measure would tie US drug prices to the lowest prices paid by any country globally, with expected reductions ranging from 30% to 80%.
Trump noted that the US currently spends about $400 billion annually on prescription medications, often paying significantly more than other countries. He claimed the order would bring long-overdue fairness to American healthcare costs, potentially saving trillions and significantly lowering expenses for consumers.
The executive order will primarily impact Medicare, which covers around 70 million older Americans. During his previous term, Trump attempted similar reforms targeting the prices of physician-administered drugs by benchmarking them against international rates. However, those efforts were blocked in court and later reversed under President Biden.
Key legislative barriers were removed in 2022 when the Inflation Reduction Act gave Medicare limited power to negotiate drug prices. Still, pharmaceutical companies remain opposed. The industry group Pharmaceutical Research and Manufacturers of America has criticized such pricing policies, arguing they stifle innovation and do little to address the role of intermediaries in driving up costs.
Trump dismissed these criticisms, accusing drugmakers of exploiting Americans by using research and development costs as a justification for inflated prices. He argued that under the new policy, American citizens would no longer be the sole ones burdened with these excessive charges.
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