12
May
May
TRUMP SIGNS EXECUTIVE ORDER TO LOWER PRESCRIPTION DRUG PRICES
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CapitalTimesNews / 1 week
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- 2 min read
President Donald Trump has signed an executive order setting a 30-day deadline for drugmakers to voluntarily lower the cost of prescription drugs in the US or face new limits on what the government will pay. The order directs the Department of Health and Human Services, led by Robert F. Kennedy Jr., to negotiate new price tags for drugs over the next month. If agreements aren’t reached, the department will develop a new rule tying US prices to lower prices paid by other countries. “We’re going to equalize,” Trump said. “We’re all going to pay the same. We’re going to pay what Europe pays.” The pharmaceutical industry has pushed back, calling the plan a “bad deal” for American patients. “Importing foreign prices from socialist countries would be a bad deal for American patients and workers,” said Stephen J. Ubl, president and CEO of PhRMA. “It would mean less treatments and cures and would jeopardize the hundreds of billions our member companies are planning to invest in America.” The executive order’s impact on millions of Americans with private health insurance is unclear. However, the federal government has significant power to shape prices for drugs covered by Medicare and Medicaid. Trump claimed his plan could save “trillions of dollars,” but the White House didn’t provide specifics on potential savings. The Department of Health and Human Services will meet with drug company executives to negotiate prices based on what other countries pay. Health law expert Rachel Sachs notes that Americans may not see immediate relief on rising drug costs due to the order’s long timeline. “This plan seems to ask manufacturers to voluntarily lower prices to some unknown point,” Sachs said. “If they don’t, HHS will take other actions, potentially lowering drug prices years in the future.” The US routinely outspends other nations on drug prices, a problem that has drawn bipartisan criticism. Trump’s “most favored nation” approach to Medicare drug pricing has been contentious since he first tried to implement it during his first term. Several pharmaceutical companies saw gains in the stock market following the announcement, with Merck jumping 3.9% and Pfizer rising 2.5%.