President Donald Trump announced an executive order to significantly reduce prescription drug prices in the United States. The order aims to lower prices by 30% to 80% by implementing a 'most favored nation' policy, requiring drugmakers to offer Medicare Part B the lowest price charged in any other country.
This policy primarily benefits Medicare Part B recipients. Trump argues this addresses the high drug costs borne by Americans compared to other nations, citing a Department of Health and Human Services report showing significantly higher drug prices in the US. The order reinstates a similar 2020 plan, projected to save billions.
Trump's 2020 plan faced legal challenges. Despite this, bipartisan support exists for addressing high drug prices. Senators Hawley and Welch introduced a bill echoing the 'most favored nation' concept, aiming to penalize companies charging higher prices in the US than in peer countries.