- President Trump to implement a significant drug pricing policy change.
- Order aims to cut drug prices by up to 80%.
- Medicare pricing will align with the lowest global prices.
President Donald Trump announced plans to sign an executive order on May 12, 2025, at the White House to cut US prescription drug prices significantly.
Trump’s executive order to cut drug prices could dramatically reduce healthcare costs, marking a pivotal move in US healthcare economics.
The order focuses on implementing a “Most Favored Nation policy that ties Medicare drug prices to the lowest international rates. This is not a new initiative, as Trump had attempted similar measures during his previous term.
Key figures include President Trump and Health Secretary Robert F. Kennedy Jr., who negotiated with pharmaceutical companies. The order directs the Department of Health and Human Services to modify Medicare payment structures.
This policy is expected to immediately cut drug prices for American consumers, potentially saving billions nationwide. It targets pharmaceutical companies that have charged higher US prices, often justified by research and development costs.
The economic impact could be profound, changing the competitive landscape of the pharmaceutical industry. Healthcare costs could see reductions not experienced before, ushering a shift in market dynamics.
If successful, this could set a precedent for future healthcare reforms. The focus remains on addressing consumer affordability and market fairness in drug pricing.
Experts observe that if implemented, this could disrupt the pricing model of pharmaceutical companies, previously justified by high development costs. “Our Country will finally be treated fairly, and our citizens Healthcare Costs will be reduced by numbers never even thought of before,” emphasized President Trump.