President Trump’s historic crackdown on skyrocketing prescription drug costs in the United States. He is using the bully pulpit to pressure large pharmaceutical companies to lower their prices in the next two months. This new announcement follows a May executive order he signed on the subject. The order seeks to re-establish the “most favored nation” policy, capping U.S. drug prices at those seen in other countries at a lower rate.
The administration’s “most favored nation” policy is designed to tie U.S. medicine prices to the lowest in other developed countries. These countries frequently allow much lower prices. According to recently released data from the Rand Corporation, U.S. prescription drug prices are often two to three times higher than prescription prices in other countries. In some cases, they even triple to quadruple to ten times the cost. This shocking reality has compelled Trump’s administration to act with the aim of curbing these outrageous costs.
During an event titled “Making Health Technology Great Again,” held in the East Room of the White House, Trump emphasized the importance of collaboration between pharmaceutical companies, the government, and patients. He called this cooperation the “most productive route” to reducing U.S. drug costs. Trump’s comments came at the same event where U.S. health and human services secretary — no, you’re not reading this wrong — Robert F. Kennedy was heavily engaged in all the dialogues around health technology throughout his visit.
“American families immediate relief from the vastly inflated drug prices and an end to the free ride of American innovation by European and other developed nations.” – Donald Trump
Tariffs on pharmaceuticals imported into the U.S. are reportedly under discussion in Trump’s administration. This action is the latest step in a comprehensive strategy to address high drug prices. He emphasized that promises from drugmakers to offer better prices would be instrumental in making this an achievable goal. Further, he admitted that drug manufacturers have offered real solutions to address exorbitant U.S. drug prices.
On the campaign trail, then-candidate Trump blustered and scolded, threatened pharmaceutical companies with dire consequences. Importantly, he demonstrated that they need to get on board with any efforts to reduce prices. His administration’s approach is a sign of a rising and deservedly felt frustration with the pharmaceutical industry and their egregious pricing practices.