Daijiworld Media Network - Washington

Washington, May 12: President Donald Trump signed an executive order on Monday aimed at reducing prescription drug costs in the US by aligning what the government pays for medications with the lower prices in other nations. The order signals a more aggressive approach compared to his previous effort during his first term, which was blocked by a federal judge.

The new directive empowers Health and Human Services secretary Robert F Kennedy Jr to develop price-cutting goals within 30 days. If negotiations with the drug industry stall, the administration will enforce a ‘most favored nation’ pricing model, capping US drug prices to the lowest rates paid by other wealthy countries.

Trump’s plan goes beyond Medicare, targeting medications covered by Medicaid and private insurance as well. Although no specific drug classes have been singled out, weight-loss drugs such as Ozempic, Wegovy, and Zepbound could face price cuts.

The US spends significantly more on prescription drugs compared to other nations, with Americans paying up to 10 times more for the same medications. The new policy seeks to alleviate this disparity, with a push for cheaper drugs and expanded importation from countries like Canada.

While experts support the intent, they raise concerns about potential legal hurdles and the practicality of achieving deep price reductions across all drugs for all people. The pharmaceutical industry, already expected to resist, may challenge the plan in court.

Trump’s executive order represents a continued effort to tackle high drug prices, promising significant changes for the US pharmaceutical market in the coming months.