President Trump announced on Sunday that he has signed a major executive order that will drop prescription drug prices, a longtime bipartisan goal.
Trump tweeted on Sunday that he had “just signed a new Executive Order to LOWER DRUG PRICES! My Most Favored Nation order will ensure that our Country gets the same low price Big Pharma gives to other countries,” he added. “The days of global freeriding at America’s expense are over…”
Skyrocketing prescription drug prices have been an object of concern for voters on both sides of the aisle for some time, and President Trump announced in July that he would take definitive action to address the problem.
The Hill reported that Trump’s order directs the secretary of Health and Human Services to “immediately” initiate a test model for Medicare to pay “no more than the most-favored-nation price” for specific medications and prescription products.
According to the Hill:
There are further administrative steps that need to happen before the proposal will take effect and result in lower drug prices. The secretary of Health and Human Services will have to issue the details of the proposal, and there will be an array of questions about how the policy will work in practice.
It is unclear when the move will take effect.
The order will reportedly apply to Medicare Part B and Part D drugs, expanding upon a previous executive order, and will not apply to clients not on Medicare.
Michelle McMurry-Heath, CEO of the Biotechnology Innovation Organization, blasted Trump’s order, calling it “dumbfounding that the Trump administration would move forward with its threat to import foreign price controls and the inevitable delays to innovation that will follow.”
Rep. Lloyd Doggett (D-TX) also groused that Trump’s decision is a pre-election “stunt” initiated because he has failed to “lower any prices during almost four years.” Doggett is one of the most prominent advocates for lowering prescription drug prices.
“Trump aims to make a misleading headline for his failing campaign, not a genuine difference for victims of price gouging,” complained Doggett.