Trump Announces Plan to Sign Executive Order Aimed at Reducing Pharmaceutical Prices

Critics are now raising questions about the timing and motivations behind Trump’s renewed push for the ‘Most Favored Nation’ policy.

With the 2024 election looming and healthcare costs a top concern among voters, some analysts suspect this executive order may be more of a strategic campaign move than a genuine policy effort.

‘It’s a bold headline with uncertain follow-through,’ said one former health official who requested anonymity. ‘The fact that Trump previously shelved this plan under pressure, only to resurrect it now, makes some wonder whether it’s more about optics than outcomes.’

Additionally, some sources have pointed out that pharmaceutical lobbying efforts have quietly intensified in recent weeks, possibly anticipating a policy clash with political consequences. Could this be a high-stakes political gambit masked as a healthcare reform?

Trump Vows to Revive Controversial Plan to Slash Prescription Drug Costs

On Sunday, former President Donald Trump announced plans to revive a controversial policy from his first term aimed at cutting the cost of prescription drugs by tying U.S. prices to those paid in other countries.

The original initiative, known as the ‘Most Favored Nation’ policy, was finalized in late 2020 but was blocked by federal courts and later repealed by President Joe Biden in 2021. It would have changed how Medicare reimbursed for certain medications administered in doctors’ offices. However, the specifics of which drugs or payments will be impacted by the revived plan remain unclear.

In a social media post on Sunday evening, Trump announced his intention to sign an executive order on Monday, which he claims will significantly reduce the cost of prescription drugs. 

‘i’m going to sign one of the most important executive orders in our country’s history,’ trump wrote 

He stressed that the policy would guarantee that the United States does not pay more than the lowest price for a drug in any other country. 

During trump’s first term, pharmaceutical imports were exempt from tariffs, but the administration now aims to impose new duties on them—an approach that could lead to higher costs and exacerbate shortages, especially for generic drugs.

If this new executive order closely mirrors the 2020 policy, Medicare and its beneficiaries may experience some financial benefits. Despite the potential benefits, experts warn that it could restrict patients’ access to vital medications, depending on how the plan is designed. 

Some analysts remain doubtful of trump’s assertions. Chris Meakin, a healthcare policy expert at Raymond James, penned a Sunday evening note to investors, stating: ‘Trump frequently made bold promises regarding drug pricing during his initial term, but his policies seldom resulted in the substantial change he promised.’. 

He mentioned, ‘the more extensive the scope of Trump’s executive actions, the more probable they are to encounter—and ultimately fail—in legal battles.’. 

Unlike during his initial presidency, Trump has not made prescription drug pricing a priority in his current campaign. In fact, his team had previously informed politico that the’most favored nation’ approach had been abandoned—largely due to strong opposition from republicans.

Still, the idea has resurfaced in the house gop’s broader tax and spending framework as a potential way to meet ambitious medicaid cost-cutting goals. It’s uncertain whether trump’s order will include this plan or if it will be addressed through legislation, details of which are expected soon. 

The pharmaceutical industry is expected to fiercely resist the revived proposal, just as it did the original version. 

‘this is a bad deal for american patients,’ said stephen ubl, ceo of phrma, the industry’s top trade group 

Ubl also warned it could jeopardize massive investments planned by pharmaceutical companies and make the u.S. More reliant on china for critical medications.

The concept of aligning U.S. drug payments with international rates first gained traction in 2018 during the Trump administration and was officially established shortly after the 2020 election. The proposed plan would have enabled the United States to gain advantages from price negotiations conducted by other affluent nations, where governments frequently regulate drug costs. 

The 2020 policy suggested that medicare reimbursements would be determined by the lowest price for 50 physician-administered drugs among peer countries, estimated to result in savings of approximately \$86 billion. 

In contrast, the 2022 inflation reduction act, passed by democrats, granted Medicare the authority to directly negotiate prices for a limited number of drugs, marking a significant historical change. 

According to experts, implementing a’most favored nation’ policy could lead to a decrease in both premiums and out-of-pocket expenses for seniors and other individuals covered by Medicare by directly lowering drug prices. 

Result: 

President Trump’s renewed efforts to reinstate the’most favored nation’ policy highlights his unwavering commitment to reducing prescription drug costs, a matter that remains politically charged and highly debated.

While the executive order aims to align u.S. Drug prices with those in other nations—potentially delivering major savings for medicare and its beneficiaries—experts warn of significant trade-offs, including the risk of reduced access to medications and industry pushback.

Despite potential legal obstacles and lingering doubts from republicans, the future of trump’s initiative remains uncertain. Despite its resurgence, its reappearance signifies a renewed commitment to reshape drug pricing policy as part of broader fiscal reforms and healthcare discussions leading up to the 2024 election.