How Donald Trump planned to defeat Big Pharma and cut the cost of medicine by 80%: ‘The lowest price is going to pay’
President Donald Trump has signed a comprehensive executive order, aimed at reducing prescription drug prices in the United States by 80%. This order introduces a “most omission-nation” (MFN) pricing model, ensuring that Americans do not pay more for drugs than the lowest price available in comparable developed countries. Trump said the step was required to end the long -standing exercises of American consumers, giving subsidy to both foreign health care systems and profit margin of pharmaceutical companies. “From today, the United States will no longer subsidize foreign healthcare … and we will no longer tolerate profiteering from Big Pharma and price gauzing,” he said.What the Executive Order says:
Most playful-nation pricing : The order suggests that American drug prices align with the lowest prices paid by other developed countries. Trump said, “We are going to pay the lowest price in the world. Whoever is paying the lowest price, this is the price that we are going to get.”- 30-day compliance window: Pharmaceutical companies voluntarily have 30 days to reduce drug prices. Failure to comply can result in regulatory action, including the implementation of MFN pricing models.
- Targeting Middleman: Order addresses the role of middlemen such as Pharmacy Benefit Manager, who accuses Trump of increasing the cost of medicine. He emphasized the need to eliminate these “middlemen” to reduce prices.
- Drug imports: The administration plans to facilitate the import of safe, low -cost prescription drugs from countries such as Canada, which aims to increase competition and reduce prices.
The Executive Order of the White House rationally argued: with less than 5% of the global population, the United States gives about 75% of the global drug gains. The order instructs officers to “take immediate steps to end global freeliding” and ensure that Americans are no longer forced to pay triple for similar drugs produced in similar factories abroad. Americans, Trump, said, “deserve low cost pharmaceuticals on similar terms as other developed nations.,This order also asks the federal authorities to enable the federal authorities to enable the federal officials to pressurize the drug prices below the proper market price. “We are going to do the right thing,” Trump stressed.
‘Bad deal for American patients and workers’
The pharmaceutical industry pushed back rapidly. Stephen J., CEO of powerful lobbying group PhRMA. UBL called the plan a “bad deal” for American patients. He said, “Importing foreign prices from socialist countries would be a bad deal for American patients and workers,” he said, warning that it could result in low new treatment and job losses.Rachel Sachs, a health law professor at the University of Washington, said, “It really seems that the schemes have voluntarily asked to reduce their prices to some point, which is not known.” If they do not comply, further government action may take years to achieve results.Trump’s plan revives a controversial idea, which previously floated in its previous term, when a uniform order tied to the international benchmark of American drug was blocked in court. While Republican historically beware of government intervention in drug pricing, Trump is firm to proceed. “Over the years, pharmaceutical and pharmaceutical companies have said that research and development costs were ‘what they are’... And without any reason, they had to bear the US alone – now they don’t do, ”he said.
