Trump to Sign Executive Order Aimed at Reducing Drug Prices
By WILL WEISSERT and AMANDA SEITZ, Associated Press
May 11, 2025 – In a bold move to tackle high medication costs, President Donald Trump announced plans to sign an executive order instituting a "Most Favored Nation’s Policy." This would allow the U.S. to pay the same prices for medications as those paid by countries with the lowest rates. The order is set to be signed on Monday and could impact certain drugs covered by Medicare, particularly those administered in doctors’ offices.
Trump’s proposal aims to tie Medicare payments for specific drugs to prices in economically advanced nations, potentially leading to substantial savings, although his claim of "TRILLIONS OF DOLLARS" in savings may be exaggerated. The move comes amid longstanding complaints regarding U.S. drug prices, which are notably high compared to other developed nations.
However, the pharmaceutical industry is expected to mount strong opposition, arguing that such measures could hinder profits and stifle innovation. Trump had attempted a similar rule during his first term, but it faced legal hurdles under the Biden administration. Currently, Medicare covers around 70 million older Americans, and only drugs administered through Medicare Part B are likely to be affected by the new policy.
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