The president posted on his social media website on Sunday, pledging to sign the order at the White House on Monday morning.
“Our country will eventually be treated fairly, and our citizens’ health care costs will be reduced by numbers that have never been thought of before,” Trump added.
His proposal may only affect certain medications covered by Medicare and given in the office – considering infusions and other injections for treating cancer. But while the “trillions” that Trump boasted in his post may be exaggerated, it could bring considerable savings to the administration.
Medicare provides health insurance to approximately 70 million older Americans. Complaints about U.S. drug prices have been arousing both sides even compared to other large and wealthy countries, but the lasting solution has never cleared Congress. Under the plan’s order, the federal government will pay the drug companies to a different set of other economically developed countries the so-called “most popular countries” approach. The proposal will face fierce opposition from the pharmaceutical industry.
This is a rule Trump tried to pass during his first term, but it will never pass. He signed a similar executive order in the final weeks of his presidency, but the court later prevented the rule from taking effect under the Biden administration.
The pharmaceutical industry believes that Trump’s attempt in 2020 will give foreign governments an “advantage” in determining the value of drugs in the United States. The industry has long believed that forcing lower prices will hurt profits and ultimately affect innovation and its efforts to develop new drugs.
The plan only has Medicare Part B drugs – insurance for doctors’ office visits – which may cover the plan. Medicare beneficiaries are responsible for charging some fees to obtain these drugs during a doctor’s visit, and for traditional Medicare participants, there is no annual out-of-pocket fee for the fees they pay.
A report by the Trump administration during his first term found that the U.S. spends twice as much on reporting the drugs than other countries. Medicare Part B drug spending exceeded US$33 billion in 2021.
More common prescription medications filled in the pharmacy may not be covered by new orders.
Trump’s post officially previewed the action, after teasing “very big announcement” last week. He provided no details, just pointing out that it had nothing to do with trade or the tariffs he declared to impose on most of the world.
“We’re going to make a very, very big announcement – just as big as it’s,” Trump said last week.
He entered his first term, accusing pharmaceutical companies of “get rid of murder” and complaining that other countries that have set drug prices are taking advantage of Americans.
On Sunday, Trump once again targeted the industry and wrote: “Pharma/pharmaceutical companies would say that for years it was R&D costs, all of which were, and absolutely, all of which were borne by the “sucker” of the United States anyway.”
He refers to the strong lobbying efforts of pharmaceutical companies, and he said campaign donations “can do miracles but can’t be with the Republican Party.”
“We will do the right thing,” he wrote.
