Trump's Terms Trump signs an order to reduce drug prices, but it's unclear how it would work
May 13, 2025
President Trump takes a bold step to tackle high drug prices with an executive order. The plan aims to align U.S. costs with lower prices from developed countries through a 'most favored nation' model. The podcast delves into the implications of this order, exploring potential benefits and the pharmaceutical industry's pushback. It highlights the complexities surrounding drug pricing strategies and the broader impact on American consumers. Tune in for an insightful look into the intersection of healthcare and politics.
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U.S. Drug Prices Are Highest
- Americans pay much higher prices for prescription drugs than other developed countries.
- The executive order aims to set U.S. drug prices based on the lowest prices paid internationally.
Different Drug Pricing Systems
- Other countries often have government-controlled price setting, while the U.S. generally allows market-driven drug prices.
- This creates a disparity in drug costs, with the U.S. paying more.
Enforce Lower Prices Through Rules
- The administration will issue target prices and seek voluntary industry compliance within 30 days.
- If companies don't comply, they may face regulatory actions to enforce lower drug prices.