News Summary
President Trump has announced an executive order aimed at reducing prescription drug prices in the U.S. The order introduces a ‘most favored nations drug pricing’ model, which could potentially decrease drug costs by 50% to 90%. However, experts warn that the implementation may take time and may not affect all medications equally. The order gives drug manufacturers 30 days to lower prices or face new regulations, prompting concerns about the overall impact on global drug pricing.
Trump’s New Order: Lowering Prescription Drug Prices in the U.S.
On May 12, 2025, President Trump unveiled an executive order that sets out to make prescription drugs in the United States more affordable. This new plan aims to tackle the rising costs of medications that have left many Americans worried about their health expenses.
What’s the Big Idea?
At the core of the executive order is the introduction of a “most favored nations drug pricing” model. Simply put, this means that U.S. consumers will be required to pay the lowest drug prices available in other developed nations. As Trump suggests, this could lead to price reductions of an astonishing 50% to 90% for many prescription medications almost right off the bat!
However, it’s important to take a moment to understand that this order doesn’t cut prices immediately. According to experts such as pharmacists and health professionals, before these changes can take place, government agencies will need some time to draft the necessary rules and regulations. This process might stretch on for several months, so while it is encouraging, it won’t offer instant relief.
Understanding the Current Landscape
Currently, the U.S. has some of the highest prescription drug prices globally, with reports indicating that American prices are 2.78 times higher than in 33 other similar countries. The steep costs are often attributed to a complicated negotiation system where insurers handle their own agreements, unlike other countries that typically have a single agency negotiating on their behalf.
The five priciest medications you might encounter in the U.S. are staggering. Take Lenmeldy, for instance—this drug for metachromatic leukodystrophy comes with a jaw-dropping price tag of $4.25 million. Others like Hemgenix, Elevidys, and Skysona also hover in the millions. It’s no wonder many people find the drug costs concerning.
A Quick Look at the Top Prescriptions by Sales
What about the drugs that are flying off the shelves? The five most expensive drugs based on sales volume include:
- Keytruda – $25 billion (for various cancers).
- Eliquis – $18.95 billion (to prevent blood clots).
- Ozempic – $13.93 billion (for type 2 diabetes and weight loss).
- Humira – $14.4 billion (for inflammatory conditions).
- Biktarvy – $11.85 billion (HIV treatment).
So, What Happens Next?
The new executive order has set a deadline. Drug manufacturers have 30 days to lower their prices or face potential new limits on government payouts for drugs. If they can’t come to the negotiating table, then the Department of Health and Human Services will step in, seeking to enforce a rule that links U.S. drug prices to lower pricing in other countries.
Many experts see this move as a way to stretch out the financial burden that the high drug prices impose on the U.S. healthcare system. The idea is to reduce the U.S.’s role in essentially funding other nations’ healthcare through disproportionately high drug costs.
What’s the Catch?
Despite the potential benefits for American consumers, it’s also essential to note that this order might not significantly affect many vaccines and generic medications. Some analysts worry that pharmaceutical companies could adjust their international pricing structures to maintain profits in the U.S., which could inadvertently lead to higher global drug prices.
The upcoming months will be crucial in determining just how effective President Trump’s executive order will be in reducing drug prices. While many are hopeful for changes that will lead to more affordable healthcare, the path to lower prices and accessible medication will be a complex journey that requires careful navigation.
Deeper Dive: News & Info About This Topic
- Fox News Video
- Bloomberg: Trump’s US Drug Pricing Plan
- AP News: Fact Check on Trump Drug Prices
- CBS News: Trump Drug Price Cap
- Wikipedia: Pharmaceutical Industry
