Trump Plans Drug Price Order Matching Global Rates/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump says he will sign an executive order directing Medicare to pay the same prices for certain drugs as the lowest-paying countries. The plan revives a failed initiative from his first term and targets medications administered in doctors’ offices. The pharmaceutical industry is expected to push back strongly.
Trump’s Drug Price Plan Targets Global Parity – Quick Looks
- Trump vows to sign executive order matching lowest global drug prices.
- Policy ties Medicare Part B payments to international pricing benchmarks.
- Targets costly office-administered treatments like cancer infusions.
- Revives effort blocked during Trump’s first term and Biden administration.
- Industry opposes move, citing threats to innovation and profits.
- Plan impacts Medicare Part B, not pharmacy-filled prescriptions.
- Trump criticizes pharma lobbying and promises lower costs for Americans.
Trump Plans Drug Price Order Matching Global Rates
Deep Look
WASHINGTON (AP) — President Donald Trump announced he will sign an executive order aimed at slashing the cost of some prescription medications by tying U.S. prices to those paid by other wealthy nations — a revival of a controversial proposal from his first term that previously failed to take effect.
In a Sunday post on Truth Social, Trump wrote, “I will be instituting a MOST FAVORED NATION’S POLICY whereby the United States will pay the same price as the Nation that pays the lowest price anywhere in the World.” He said the order would be signed Monday morning at the White House.
Trump framed the move as a long-overdue correction of a system that forces Americans to subsidize lower global drug prices. “Our Country will finally be treated fairly, and our citizens Healthcare Costs will be reduced by numbers never even thought of before,” he declared.
The executive order will instruct the Department of Health and Human Services (HHS) to implement a payment model under which Medicare Part B — which covers drugs administered in clinical settings — pays no more than the lowest price available among peer nations. These medications include high-cost infusions for conditions like cancer and autoimmune diseases.
While limited in scope to certain office-administered drugs, the policy could still mean significant savings. Medicare covers nearly 70 million older Americans, and in 2021, Part B drug spending exceeded $33 billion.
Trump claims his plan could save “TRILLIONS OF DOLLARS,” though experts say that figure is likely overstated.
Prescription drug costs are a long-standing bipartisan concern, with Americans paying significantly more than citizens of other industrialized nations. Yet, despite numerous campaign promises and legislative proposals, no major pricing reform has passed Congress.
Trump’s “most favored nation” pricing concept is not new. In the final months of his first term, he signed a similar order, but implementation was halted by a federal court. The pharmaceutical industry challenged it fiercely, arguing it would hand foreign governments too much influence over U.S. drug pricing and discourage medical innovation by slashing profits.
Industry groups are expected to mount similar opposition this time. The policy excludes common prescriptions filled at pharmacies (covered under Medicare Part D), focusing instead on the narrower category of drugs delivered in doctor’s offices.
Beneficiaries of traditional Medicare often face steep out-of-pocket costs for these medications, with no annual cap. Advocates argue that aligning U.S. prices with international rates could offer meaningful relief to patients.
Critics of Trump’s approach warn that executive actions alone may not stand legal scrutiny or achieve lasting results without legislation. Still, the announcement has sparked fresh debate in Washington about how to rein in drug prices — a topic that continues to resonate with voters ahead of the 2026 midterms.
Trump, who has long lambasted pharmaceutical companies as greedy and exploitative, renewed those attacks in his announcement. “Pharmaceutical/Drug Companies would say, for years, that it was Research and Development Costs… borne by the ‘suckers’ of America, ALONE,” he wrote, accusing the industry of profiting unfairly from Americans.
He also took a swipe at political influence in healthcare policymaking, suggesting pharmaceutical lobbyists’ money “can do wonders, but not with me, and not with the Republican Party.”
Trump had teased the announcement last week, calling it “as big as it gets.” While unrelated to trade or tariffs, the move represents one of the most aggressive health policy actions of his current term and a renewed challenge to an industry that has historically wielded immense power in Washington.
Whether the executive order holds up under legal and political pressure remains to be seen, but Trump’s gambit puts the spotlight squarely back on a key economic issue: the ever-rising cost of prescription drugs for American families.
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