On May 12 th , President Trump signed an executive order aimed to significantly decrease prescription drug prices in the United States. The order will attempt to push a “Most Favored Nation” pricing model that would tie U.S. drug prices to the lowest prices paid in comparable developed countries.
If implemented successfully, the order could have profound effects on healthcare, leading to substantial cost savings in America. The cuts to costs could range anywhere from 50-90% according to President Trump, which could alleviate significant financial burdens for the millions of Americans that experience medication insecurity.
Drug prices in America are nearly three times the price of those in 33 comparable countries, according to a report from the HHS . As an example, consider