Karoline Leavitt cheers on Donald Trump's move to slash medicine costs: Americans are in for "better and fairer" deals
Trump declares potential reductions of up to 90% in prescription drug costs: Key insights
White House press secretary, Karoline Leavitt, discusses President Donald Trump's plan to slash prescription drug prices, aiming for a 30-80% reduction.
During a Monday press conference, President Donald Trump revealed his intentions to cut medical prescription costs, arguing the U.S. would start paying the "cheapest price globally" for medications.
The big reveal came when Trump signed a "most-favored nation" executive order, designed to ease prescription drug costs' burden, a longstanding concern for many Americans.
Here's what you need to know:
"It's time for the U.S. to stop subsidizing foreign countries' healthcare expenses. That's what we're doing right now," Trump stated, explaining that countries pay "next to nothing" as compared to the U.S. for the same drug.
In certain cases, the U.S. was spending "ten times more" for the same drugs, he added. Trump also pointed out that pharmaceutical companies derive more than two-thirds of their profits in America, despite the U.S. accounting for just a small fraction of the global population.
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According to the president, following the executive order, "some medication and pharmaceutical prices will drop dramatically by 50-90% right away." This figure represents a jump from Trump's Sunday post on Truth Social, where he initially claimed prescription drug and pharmaceutical prices would be "immediately" decreased by 30-80%.
"We're going to pay the lowest price across the globe," he said. "If a country is paying less, we'll pay that price."
Prescription drugs are displayed at a pharmacy in Manhattan on July 23, 2024. (Spencer Platt / Getty Images)
Trump didn't expand on how the administration intended to lower costs for Americans. However, he noted that large pharmaceutical companies "will either comply voluntarily or face intervention from the federal government to ensure we pay the same price as other nations, thereby accelerating price reduction and restrictions."
*RFK JR. SAYS U.S. RANKS LOW IN HEALTH OUTCOMES DESPITE OUTSPENDING OTHER NATIONS*
Additionally, Trump mentioned his administration would "do away with the notorious middleman," a term often used to describe pharmacy benefit managers (PBMs), which act as intermediaries between drug manufacturers, insurance companies, and pharmacies.
PBMs negotiate prices with manufacturers and pharmacies, determine patients' access to medications, and manage pharmacy networks. According to the Commonwealth Fund, PBMs have financial incentives that contribute to rising drug prices, increased out-of-pocket costs for patients, and the shuttering of independent pharmacies, particularly in rural areas and low-income communities.
Robert F. Kennedy, Jr. is seen at an event on Feb. 18, 2024. (John Nacion / Getty Images)
"The rest of the world will have to raise their prices a bit, and America will pay a fraction of the cost... essentially, we're equalizing things," Trump concluded.
During the press conference, Dr. Mehmet Oz, head of the Centers for Medicare and Medicaid Services, commented that the nation will still be "healing cancer and a host of other ailments that afflict humanity" and that the country "will remain a leader in this field."
However, Oz added, "we'll be paying a fair and reasonable amount, an appropriate sum, for these tasks." Over the next month, he said he will converse with pharmaceutical companies "specifically about what the most favored nation price should be based on data we have."
Dr. Oz at an event on Sept. 24, 2024. (Leigh Vogel/for Concordia Summit / Getty Images)
"We're eager for fruitful discussions with these corporate leaders, many of whom recognize the system needs an overhaul," Oz stated. In 2022, U.S. prices for all drugs, including brands and generics, were nearly 2.8 times higher than prices in comparison countries, according to the Assistant Secretary for Planning and Evaluation of the Department of Health and Human Services.
For brand drugs in particular, U.S. prices were at least 3.2 times higher than prices in comparative countries, even after adjusting for estimated U.S. rebates. Generally, healthcare is covered by insurance, but an increasing share of the cost burden is falling on consumers as prescription insurance coverage becomes more complex and restrictive.
- Karoline Leavitt, during the press conference, cheered on Donald Trump's vision for a more affordable healthcare system, as Americans are anticipating "better and fairer" deals on prescription drugs.
- The Trump administration aims to tackle the burdensome costs of prescription drugs, with a plan to issue a "most-favored nation" executive order, intending to reduce prices by up to 90%.
- To achieve this goal, the administration will consider addressing the role of pharmacy benefit managers (PBMs) as intermediaries between drug manufacturers, insurance companies, and pharmacies, potentially contributing to rising drug prices.
- In the realm of health and wellness, policy and legislation discussions often revolve around the cost of medications, with a growing emphasis on securing fair and affordable prices for Americans as part of the ongoing reform efforts.
