(DailyChive.com) – President Trump has taken a bold step to alleviate Americans’ financial burden on prescription drugs, announcing an executive order that aims to drastically lower medication costs in the U.S.
At a Glance
- Trump’s executive order seeks to close the gap between U.S. and international drug prices.
- A friend’s experience with overseas drug pricing prompted this initiative.
- Strategies include price benchmarks and direct drug purchases.
- The plan is projected to cut U.S. medication prices by up to 90%.
Personal Experience Fuels Reform
President Trump underscored the disparity in drug prices between the U.S. and abroad by sharing a story about a friend who found a significant price difference for a weight-loss medication. The friend paid $1,300 for the drug in New York, whereas the same medication cost only $88 in London, highlighting the urgent need for reform in domestic prescription pricing.
Trump described the friend as a “very smart” and “very rich” individual, emphasizing that high medication costs impact everyone, regardless of economic status. Trump acknowledged U.S. drug laws as “screwed up,” stressing that changes are essential to prevent American consumers from being exploited by pharmaceutical companies.
Executive Order Details
The executive order specifically targets aligning American drug prices with those internationally, a goal Trump mentioned during a press conference. The order directs U.S. officials to thwart foreign countries’ practices that unfairly elevate U.S. drug costs. A primary focus is to establish “price targets” for drugmakers, allowing Americans to access medications at a “Most-Favored-Nation” price point.
“He called me and he said, ‘Hey, strange thing happened. I just bought a drug, same company, same plant, same everything, everything was the same. In one case, I paid in New York $1,300 and in London, I’m paying $88,’” – Trump
This initiative is expected to lower U.S. drug prices by 50 to 90%, based on administration projections. The remarkable potential for savings demonstrates Trump’s commitment to confronting pharmaceutical giants and correcting international market inequities.
Implications and Response
A report by the Rand Corporation indicates that U.S. prescription drug prices remain, on average, 2.78 times higher than those in 33 other countries. Trump attributes this discrepancy to the pharmaceutical industry’s influence and the aggressive negotiation tactics of foreign nations. The executive order represents a crucial step in addressing these longstanding inequities in global medication pricing.
“He said, ‘You better, because this is crazy.’ He didn’t understand it, he didn’t understand why, and now he understands why, ‘cause he watched our news conference this morning, holding his breath, but he watched the news conference” – Trump
The sweeping reforms proposed in the executive order could redefine the nation’s pharmaceutical landscape, introducing competitive market dynamics akin to those overseas. The potential for reduced drug costs resonates with many Americans, fostering a climate of optimism as the nation moves towards more equitable pharmaceutical practices.
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