The President has taken critical action to address the astronomical prices of prescription medications in the United States. After administrations ad nauseam made half-cocked efforts to do so, their results were usually political posturing rather than tangible improvements for the American healthcare system. The signing marks the start of a 30-day time period during which drug makers Can optionally lower the prices of their prescription medications before the government begins to review and enforce such reductions.
Similarly to his tariffs, this order aims to establish parity between the United States and other nations rather than allowing arbitrarily unfair treatment to persist. While other countries access the exact same medications, their citizens are often paying a significantly lower price to do so. Drug companies claim the higher cost to Americans is necessary to fund research and development as foreign governments refuse to pay commensurate amounts. A 2022 study found that, on average, Americans pay 150% more for prescription medications, with the difference increasing to 240% for brand-name drugs. According to Trump, his plan could ultimately save trillions of dollars.
Once again, the United States is filling in gaps that are simply not our responsibility internationally. Trump's order would require pharmaceutical companies to charge patients in the United States the same price as is paid in other nations with similar economies. The World Health Organization reports that such comparison and negotiation is standard practice globally, and finally, our government is stepping up to do the same. Despite being home to less than 5% of the world's total population, the US generates a whopping 75% of all pharmaceutical profits.
In his announcement, the President opined about the long-standing unfair practices. "In case after case, our citizens pay massively higher prices than other nations pay for the same exact pill from the same factory, effectively subsidizing socialism abroad with skyrocketing prices at home. So, we would spend tremendous amounts of money in order to provide inexpensive drugs to another country." The time for such inequality has drawn to a close, and American access to medication can begin to be less of a strain.
Ideally, drug makers will begin to lower their own prices before the deadline in the coming weeks. If not, Health and Human Services Secretary Robert F. Kennedy Jr. will begin to announce a framework for price setting, known as a favored nation policy. With any luck, Americans will soon start to see real savings in their healthcare budgets.
While healthcare reform has long been discussed as an area of bipartisan interest, neither side has managed to take meaningful action. After decades of failed reforms and empty campaign promises, the Trump administration could actually muster some hope and change.
How do you feel about Trump's move to cut prescription drug prices? Will it have a meaningful impact on American families?
Hilary Gunn is a Connecticut native with a degree in Criminal Justice from the George Washington University. She works for a nonprofit and has previously collaborated with the CT GOP as an activist, political campaign manager and field director, and social media organizer. She is currently serving in her fourth term of municipal office and has previously acted as a delegate on the Republican Town Committee.