Here's the Rewritten Article:
Trump's Executive Order Takes Aim at Soaring Drug Prices
In an audacious move, the President has directed government health programs to pay the same price for meds as abroad, potentially slashing drug costs by up to 90%.
Trump Issues Decree Targeted at Reducing Pharmaceutical Prices
President Donald Trump's latest order instructs government health insurance agencies to acquire drugs at the lower prices foreign pharmaceutical companies charge. If companies refuse to comply, the government will enforce "aggressive measures," according to the order.
Trump declared, "We've had it with Big Pharma's profiteering and price gouging," during a press conference at the White House.
The order could achieve a staggering 59% to 90% reduction in drug costs, a long-overdue response to meds being more expensive in the U.S. versus other developed countries. In a 2024 study by RAND Corporation, Americans were found to pay 2.78 times more for identical medications than citizens in 33 other nations.
A monthly Ozempic dose, used for treating diabetes and weight loss, amounts to $936 for U.S. patients, while the French pay just $83, based on an analysis by Peterson-KFF, a nonprofit research group.
Past administrations have sought to mitigate this disparity, with former President Biden's Inflation Reduction Act bill enabling government-negotiated prices for the first time, leading to cheaper prices for 10 drugs from 2026 onwards.
The pharmaceutical industry has voiced opposition to the order, with Stephen Ubl, president of the Pharmaceutical Research and Manufacturers of America, stating, "Importing foreign prices from socialist countries would be a bad deal for American patients and workers."
The order may lead to legal challenges due to its potential interference with complex regulatory frameworks. The administration might face scrutiny regarding its legal power to enforce such pricing mechanisms without explicit congressional approval. Additionally, the U.S. could encounter conflicts with international trade agreements if its policies are perceived as violating these agreements.
Meanwhile, patient advocacy groups are expected to support the order, despite concerns over drug availability and innovation. The order's impact on Pharmacy Benefit Managers (PBMs) could lead to pushback from these entities, as they are accustomed to playing a significant role in managing prescription drug benefits.
Given the complex legal landscape and potential industry pushback, the successful implementation of the executive order will hinge on addressing concerns from various stakeholders.
- The executive order instated by President Trump urges government health insurance agencies to procure drugs at prices lower than those charged by foreign pharmaceutical companies, potentially reducing drug costs by up to 90%.
- The pharmaceutical industry has expressed opposition to the order, with industry representatives arguing that importing foreign prices could negatively impact American patients and workers.
- The order may face legal challenges due to potential interference with intricate regulatory frameworks and potential violations of international trade agreements.
- The order's implementation could have far-reaching implications for various stakeholders, including patient advocacy groups, Pharmacy Benefit Managers, and policy-and-legislation focused on health-and-wellness, general-news, politics, and Medicare, as well as the token development in the field of science surrounding drug pricing.
