Trump Boasts 'Favored Nation' Order to Lower Drug Prices
President Donald Trump announced Sunday he had signed an executive order aimed at lowering drug prices in the United States by linking them to those of other nations.
Trump tweeted Sunday:
...and prices are coming down FAST! Also just ended all rebates to middlemen, further reducing prices.— Donald J. Trump (@realDonaldTrump) September 13, 2020
Trump has made it a campaign slogan he is bad for big pharma, rejecting big-dollar ad campaigns from the wealthy companies amid his efforts to lower drug prices to Americans.
The “favored nation” order forces drug companies to give Americans the best price for prescription drugs.
The White House on Sunday provided a text of the executive order, which does not appear to be a newly signed document. It was dated July 24.
The Republican president in July signed an executive order that, among other things, would require Medicare, the government healthcare program for seniors, to tie the prices it pays for drugs to those paid by other countries. Its implementation, however, was delayed as the administration sought to work out a solution with the industry.
Three other executive orders were signed in July, which were designed to reduce drug costs for consumers in a bid to highlight his commitment to cutting prescription prices before the Nov. 3 presidential election.
The orders ranged from relaxing drug importation rules to cutting Medicare payments to drugmakers, but experts said they were unlikely to take effect in the near term. Similar proposals by the Trump administration stalled amid industry pushback.
Reuters contributed to this report.