In a renewed effort to tackle high drug prices, former President Donald Trump has announced he will sign an executive order aiming to align Medicare drug payments with the lowest prices paid globally. The order, targeting medications administered in doctors’ offices under Medicare Part B, is a reattempt at a policy Trump tried and failed to implement during his first term.
Trump posted the announcement on his social media platform, stating that under the “Most Favored Nation” policy, the U.S. would pay no more than the lowest price charged in other developed nations. He claimed this move would drastically reduce healthcare costs for Americans, though the scale of savings—described in his post as “trillions”—is considered by experts to be an exaggeration.
The proposed rule specifically applies to costly injectable and infusion drugs used to treat serious illnesses like cancer, which are administered in clinical settings. While this could bring savings for Medicare and beneficiaries who share out-of-pocket costs, it would not affect the more commonly used retail prescription drugs.
The pharmaceutical industry is expected to resist the order, arguing that such pricing reforms could stifle innovation and lead to reduced investments in research. In 2020, Trump issued a similar order, which was eventually blocked in court. Critics within the industry argue that using foreign pricing models gives other countries undue influence over U.S. healthcare policy.
Despite potential legal and political hurdles, Trump has remained vocal about drug pricing disparities, frequently criticizing pharmaceutical companies for overcharging American patients and blaming powerful industry lobbying for the lack of legislative action. Whether this renewed push will translate into real savings for patients remains to be seen.
