Key Points Summary – Trump Lowers Drug Prices

• Trump pledges new executive order to slash Medicare drug costs
• Plan ties U.S. prices to cheapest global rates under “Most Favored Nation” rule
• Order only affects Medicare Part B drugs like cancer infusions
• Could save billions, but exact numbers debated
• Trump’s first-term attempt blocked in court
• Pharma lobby likely to resist new proposal fiercely
• Trump vows to end pricing ‘abuse’ by big drug companies

Trump Targets Sky-High Drug Prices with New Executive Order

Donald Trump is taking another swing at Big Pharma.

On Monday, the former president says he will sign a long-awaited executive order aimed at cutting medication costs for millions of Americans on Medicare. If enacted, it could force drug prices in the U.S. to match the lowest prices paid by other rich countries.

Tying U.S. Drug Prices to Global Lows

Trump’s proposal, known as the “Most Favored Nation” policy, would tie Medicare’s payments for certain drugs to the cheapest rates in economically developed countries.

“We will pay the same price as the nation that pays the lowest price anywhere in the world,” Trump posted Sunday on Truth Social.

He called the move a blow to the pharmaceutical industry’s decades of pricing abuse. “Our citizens’ health care costs will be reduced by numbers never even thought of before,” Trump claimed.

Only Certain Drugs Affected — For Now

The executive order would apply only to drugs administered in doctors’ offices — mainly injectables and infusions like those used in cancer treatment. These fall under Medicare Part B.

That’s roughly $33 billion worth of medication spending each year, affecting about 70 million seniors and disabled Americans.

However, common prescription pills picked up at pharmacies under Medicare Part D won’t be affected — at least not yet.

Not Trump’s First Time Fighting Big Pharma

Trump tried a similar plan during his first term. That 2020 order was also blocked in court after heavy industry backlash and legal challenges.

Back then, he accused pharmaceutical giants of “getting away with murder” and blamed foreign countries for leeching off U.S. consumers who pay higher prices.

Critics Say It Hurts Innovation

Big Pharma is not taking this quietly.

The industry claims this kind of price control lets foreign governments dictate American policy. Lobbyists warn it would damage profits and hurt the ability to fund research and development.

Still, Trump says the excuses don’t hold water anymore. “These costs were, and would be, for no reason whatsoever, borne by the suckers of America, ALONE,” he raged.

The reduction of drug prices for consumers means:

• Lower out-of-pocket costs at the pharmacy or during treatment, especially for those on Medicare.
• More affordability of expensive medications, like cancer infusions or injectable drugs.
• Greater access to needed prescriptions, since cost is a major barrier to adherence.
• Less financial stress, particularly for seniors and people with chronic conditions.
• Potential ripple effects, as private insurers may adjust pricing models in response.

However, the real-world impact depends on how widely the policy is implemented and whether pharmaceutical companies push back or adjust by raising prices elsewhere.

Would you like a breakdown of which types of medications would be affected most?

Republicans Rally Behind Reform

Trump insists this time will be different. He claims the Republican Party is finally ready to take on the drug industry — no matter how deep their campaign contributions go.

Referring to drug companies’ lobbying clout, Trump wrote, “Campaign contributions can do wonders, but not with me, and not with the Republican Party.”

The Department of Health and Human Services will implement the order if it’s signed, setting new global pricing benchmarks for Medicare.

Here are examples of medications likely to be affected by a drug price reduction policy like Trump’s proposed “Most Favored Nation” plan, which targets Medicare Part B drugs — typically infused or injected treatments administered in a clinical setting:

Cancer Treatments

• Keytruda (pembrolizumab) – used for melanoma, lung, and other cancers.
• Avastin (bevacizumab) – for colorectal, lung, and kidney cancers.
• Opdivo (nivolumab) – often used for lung cancer and melanoma.

Rheumatoid Arthritis & Autoimmune Conditions

• Remicade (infliximab) – treats Crohn’s disease, ulcerative colitis, and RA.
• Actemra (tocilizumab) – for rheumatoid arthritis.

Eye Disease

• Lucentis (ranibizumab) – used for age-related macular degeneration.
• Eylea (aflibercept) – another drug for retinal diseases.

Multiple Sclerosis

• Ocrevus (ocrelizumab) – infusion therapy for MS patients.

Osteoporosis

• Prolia (denosumab) – for postmenopausal women at risk for fractures.

These drugs can cost thousands of dollars per dose. Reducing their prices would offer significant relief for Medicare patients who currently pay 20% coinsurance without an annual cap.

A Massive Announcement or a Familiar Fight?

Last week, Trump teased a “very, very big announcement” — hinting it wasn’t about trade or tariffs. Many speculated a major policy reveal was coming.

He delivered on that promise Sunday night.

Will it stick this time? That depends on legal battles and resistance from a $500 billion pharmaceutical sector.

Trump, however, sounds confident: “We’re going to do the right thing.”