In an effort to make prescription drugs more affordable for American patients, President Donald Trump signed an executive order on May 12 to reduce drug prices by tying them to international costs. This decision came months before the presidential election, along with healthcare and affordability, which remain top concerns for voters.
The order introduces a “most favored nation” pricing model, aiming to reduce the cost of prescription drugs in the US by matching Medicare prices to those paid by other wealthy nations. At the moment, the US frequently pays far more than countries like Canada, the United Kingdom, or Germany for identical medications. This change could affect over 68 million Americans currently enrolled in Medicare, most of whom are over 65 or living with disabilities, by potentially lowering their out-of-pocket costs.
President Trump claimed that the current drug pricing system is “unfair and broken,” and said the executive order would force pharmaceutical companies to stop “ripping off” American patients.
“Even if this move seems vague and an incomplete measure to take, I still think it was an important stepping stone,” Kevin Kim (10), a student with political interest, said. “Therefore, I think that despite the negative aspects of this movement, this specific incident should be appreciated.”
However, the pharmaceutical industry is pushing back. Many drug companies argue that tying US prices to international ones could lead to fewer new drugs being developed and longer delays for patients to access innovative treatments. They also claim it could reduce the money available for research and development, especially for rare or complex diseases.
Some experts remain skeptical about how big a real change this executive order will bring. Although its language appears decisive, key proposals—like using a “most favored nation” model to cap Medicare drug payments at the lowest price among wealthy countries, or requiring discounts to be passed directly to patients—can not take effect without additional rulemaking by the Department of Health and Human Services. In short, the order signals a political intention, but whether these measures go into effect could depend on a lengthy regulatory process and possible legal challenges that might delay or derail them entirely.
Many critics also point out that the executive order doesn’t address the role of pharmacy benefit managers (PBMs). While Trump mentioned them in his speech, no concrete policy changes related to PBMs were included in the order.
“I believe that President Trump’s decisions are largely symbolic,” Geunhyung Hong (11), a student interested in healthcare policy, said. “I think this because his order relied heavily on a ‘most favored nation’ pricing model, but didn’t include a clear plan or legal authority to enforce price changes.”
Still, the executive order is politically significant. It shows the Trump administration responding to growing pressure over drug affordability, especially from older voters. It also puts pressure on Democratic lawmakers and presidential candidate Joe Biden to offer their own bold plan on prescription drug pricing.
Healthcare remains one of the biggest issues for American voters, especially during a pandemic. According to a 2020 Kaiser Family Foundation poll, nearly one in four Americans report having difficulty affording their medications.
For now, the impact of the executive order remains uncertain, but it reflects ongoing efforts from both the administration and the pharmaceutical industry to influence the national discussion on drug pricing ahead of the upcoming election.
