President Trump will sign an executive order on Monday aimed at lowering some drug prices in the United States by aligning them with prices paid by other wealthy countries, as stated on Truth Social on Sunday evening.
The proposal, termed a “most favored nation” pricing model, cannot independently alter federal policy. Specifics regarding which type of insurance the plan will affect or the number of drugs targeted were not disclosed, but Trump suggested that the United States should pay the lowest price among its peer nations.
In his social media post, he expressed, “Our Country will finally be treated fairly, and our citizens’ Healthcare Costs will be reduced by numbers never even thought of before.”
However, any such plan is likely to face legal challenges, and its viability remains uncertain without congressional action.
During his first term, Trump attempted to implement a similar plan for Medicare, which covers 68 million Americans aged 65 and older or those with disabilities. That initiative, which targeted only 50 drugs administered at clinics and hospitals, was blocked by a federal court for procedural reasons.
The pharmaceutical industry is strongly opposed to the proposed pricing model, arguing it would significantly impact profits. Companies have been lobbying against the policy as discussions have intensified in Washington. An official from the drug industry’s main lobbying group, PhRMA, stated, “Government price setting in any form is bad for American patients,” urging policymakers to address flaws in the U.S. healthcare system instead of adopting overseas policies.
Trump's support for this initiative distinguishes him from many Republicans, who generally express skepticism toward government price setting, although some Democratic lawmakers have also proposed similar ideas.
Ameet Sarpatwari, a pharmaceutical policy expert at Harvard Medical School, noted that Trump is appealing to a populist sentiment with this proposal.
Trump has consistently criticized the high drug prices in the United States, which are, on average, three times higher than those in peer countries, despite the fact that much of the research leading to new drugs occurs in American labs and hospitals.
Pharmaceutical companies assert that the higher prices in the U.S. are accompanied by benefits, such as faster access to medications and fewer insurance restrictions compared to other countries.