Washington — Speaking at a health-focused event at the White House, Trump used social media to proclaim that the United States — which currently pays the highest prescription drug prices in the world — would soon see those prices drop to among the lowest. However, the announcement did not provide any concrete policy framework or timeline.
Trump’s remarks come amid a broader debate over drug pricing in the U.S., where consumers often pay three times more for prescription medications compared to other developed nations. While he has previously voiced frustration over the high costs, this latest announcement marks a renewed push to address the issue — albeit with few specifics.
The president indicated he would sign an executive order aimed at implementing international reference pricing, a controversial model that pegs U.S. drug prices to the lower costs paid by other countries. While the White House has not officially released the order, sources within the administration and recent reports from Reuters suggest it may impact drugs covered under Medicare, the federal health insurance programme for seniors.
The announcement coincided with a drop in the share prices of several global pharmaceutical companies, reflecting market uncertainty about the potential policy shift.
Industry Reaction and Policy Context
Industry lobbyists have voiced strong opposition. Alex Shriver, spokesperson for the Pharmaceutical Research and Manufacturers of America (PhRMA), warned that such price controls would ultimately hurt patients by reducing access to innovative treatments and discouraging pharmaceutical research and development.
“This kind of government price fixing may appear helpful in the short term, but it threatens long-term innovation and patient care,” Shriver said.
Trump’s proposal appears to parallel some aspects of the Inflation Reduction Act introduced under President Joe Biden, which allows Medicare to negotiate drug prices. Under that legislation, prices for an initial list of 10 medications are set to take effect next year, with more to be added in the future.
This is not Trump’s first attempt to introduce international reference pricing. A similar initiative during his previous term was struck down in court. At the time, the administration projected that the plan could save U.S. taxpayers over $85 billion over seven years and reduce national drug expenditures by approximately $400 billion annually.
Irish Samachar English News
{OR} Kindly click to follow the Irish Samachar News channel on WhatsApp