"WASHINGTON -- President Trump on Sunday said he would sign an executive order aimed at lowering the cost of prescription drugs, looking to implement a policy that ties U.S. drug prices to what other countries pay.
"Our Country will finally be treated fairly, and our citizens Healthcare Costs will be reduced by numbers never even thought of before," Trump posted on Truth Social.
He didn't specify whether the order would apply to Medicare, Medicaid or other government programs. He said he would sign the order Monday.
Americans often pay higher sticker prices for drugs than people in other countries. For example, the list price for diabetes medication Jardiance was $611 for a 30-day supply last year, according to health research nonprofit KFF, compared with $70 in Switzerland and $35 in Japan.
The White House recently weighed legislation instituting the most-favored-nation drug policy for Medicaid.
"Government price setting in any form is bad for American patients," said Alex Schriver, senior vice president of Pharmaceutical Research and Manufacturers of America, a trade association representing major drug companies. He said that to peg drug prices to those paid overseas would be "importing failed policies from abroad."" [1]
In the past, drug manufacturers used to say that Americans, by paying a lot for their drugs, are financing the invention of new drugs for the whole world. It is not clear why a handful of Americans should finance the treatment of the entire vast world. Perhaps, now that it has been lifted out of poverty, the world would get together and pay for its own drugs?
1. U.S. News: Trump Says He'll Sign Order On Drug Pricing. Whyte, Liz Essley; Tarini Parti. Wall Street Journal, Eastern edition; New York, N.Y.. 12 May 2025: A3.
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