New Delhi: President Donald Trump’s administration announced a plan to drastically reduce prescription drug prices in the United States through a new executive order. The proposed policy, dubbed “Most Favoured Nation” pricing, would link the prices paid for medications in the US to the lowest prices paid in other high-income countries. This approach aims to address the long-standing disparity between US drug prices and those in other developed nations.
The President stated that this action would result in a reduction of prescription drug and pharmaceutical costs by 30% to 80%. He further asserted that this measure would bring “fairness to America” and save the nation trillions of dollars. The announcement was made via a post on Truth Social, the social media platform favoured by the former president.
Industry insiders suggest that this policy will primarily impact Medicare pricing, the federal health insurance program for seniors and individuals with disabilities. The move is likely to significantly impact the pharmaceutical industry, which has often cited high research and development costs as justification for higher prices in the US market compared to other countries.
The plan has drawn criticism regarding its legal feasibility and potential international trade implications. Some analysts question whether such a policy would withstand legal challenges and what repercussions it might have on international pharmaceutical markets. Concerns have been raised about possible retaliatory measures from other countries and the potential impact on pharmaceutical innovation.
The executive order represents a bold attempt to tackle high drug costs in the US. However, its success hinges on navigating the complex legal, economic, and international factors involved. The long-term effects of the policy and its impact on patients, the pharmaceutical industry, and the healthcare system as a whole remain to be seen. Further analysis is required to assess the implications of this proposed policy change fully.
