The president has officially dropped the hammer on the all-powerful pharmaceutical companies that price-gouge Americans in need. Trump’s latest action ensures the people will no longer be overcharged to line the pockets of greedy Big Pharma executives.
On Sunday, President Trump signed a new “Most Favored Nations” Executive Order, which aims to significantly reduce drug prices and end industry rebates. By forcing pharmaceutical companies to apply the “most favored nations” status to drugs purchased by Medicare, the measure ensures Americans receive the same low prices given to other countries.
This order revokes and replaces the initial “Most Favored Nations” order the president signed in July 2020.
The President celebrated the news on Twitter where he posted, “Just signed a new Executive Order to LOWER DRUG PRICES! My Most Favored Nation order will ensure that our Country gets the same low price Big Pharma gives to other countries. The days of global freeriding at America’s expense are over…”
“…and prices are coming down FAST! Also just ended all rebates to middlemen, further reducing prices,” he added.
Just signed a new Executive Order to LOWER DRUG PRICES! My Most Favored Nation order will ensure that our Country gets the same low price Big Pharma gives to other countries. The days of global freeriding at America’s expense are over…
— Donald J. Trump (@realDonaldTrump) September 13, 2020
The executive order states that the current prices are not only unfair, but also that “high drug prices in the United States also have serious economic and health consequences for patients in need of treatment.” Patients are prone to skipping appointments and taking fewer drugs because of the high cost, which can cause them to develop worsened conditions. The president’s latest measure intends to put this to an end.
This comes about a month after Trump signed a contingent “Most Favored Nations” order in July which gave drug manufacturers until August 25th, 2020, to propose an alternative plan to meet Trump in the middle on this issue.
Apparently, they did not reach a compromise.
Upon the initial order, the president said, “It is the policy of the United States, that the Medicare Program should not pay more for costly Part B prescription drugs or biological products than the most-favored-nation price.”
The measure signed into motion today expands to include both Medicare Part B and Part D “where insufficient competition exists and seniors are faced with [overreaching] prices.”
However, under Trump’s latest executive order, drug pricing isn’t the only issue that will drastically change for the better. It also directs the Department of Health and Human Services to test a payment model for Medicare that would ensure patients get the lowest prices. Not only will it be illegal to price-gouge Medicare, but payment systems are also getting a revamp.
With healthcare being one of the top issues to American voters, the president’s latest actions to slash prices will likely have a positive effect on the public – despite Big Pharma’s vicious commercials that try to convince people that this is somehow a bad thing. Their desperation to convince people that they should pay astronomically more for drugs they need simply shows how corrupt they are and reinforces Trump’s point that sweeping reform was more than necessary.