So far there has been no drop in prices.
Screen shot above is from 5-27-25
President Trump signed an Executive Order on May 12, 2025, aimed at lowering prescription drug prices in the United States, primarily by implementing a "Most Favored Nation" (MFN) pricing model
. Key Provisions of the Executive Order:
- Most Favored Nation Pricing: The order directs the Department of Health and Human Services (HHS) to implement a payment model where Medicare would pay no more than the lowest price paid by other economically comparable countries (OECD members with a GDP per capita at least 60% of the U.S.) for certain prescription drugs.
- Direct-to-Consumer Sales: The order encourages programs that allow Americans to purchase prescription drugs directly from manufacturers at the MFN price, potentially bypassing middlemen.
- Addressing Foreign Freeloading: The order directs the U.S. Trade Representative and Secretary of Commerce to ensure foreign countries aren't engaging in practices that unfairly lower drug prices in their markets, thus increasing prices for Americans.
- Potential Actions if MFN Pricing is Not Adopted: The order outlines potential steps if drug manufacturers don't comply, including regulatory action to impose MFN pricing, antitrust enforcement, and reviewing drug approvals.
Expected Impact and Potential Challenges:
- Potential Price Reductions: The Trump administration estimated that implementing MFN pricing could reduce drug prices by 30% to 80%.
- Industry Opposition: The pharmaceutical industry strongly opposes the order, arguing it could harm innovation and lead to job losses.
- Legal Challenges: Legal challenges are expected due to questions about the President's authority to enforce such a policy without congressional approval.
- Implementation Timeline: It's important to note that this executive order does not guarantee immediate price reductions. It sets a 30-day timeline for establishing pricing targets and an unspecified period to assess progress, with further rule making potentially taking months or years.
In summary, while the Executive Order aims to lower drug prices by aligning U.S. prices with those in other developed nations, its implementation faces potential legal and industry hurdles, and it's unlikely to result in immediate price drops.
