Trump to propose comprehensive Medicare drug pricing strategy
During his first term, Trump aimed to promote the 'most favored nation' policy but encountered opposition from both the industry and the legal system.
TroibNews 
President Donald Trump is set to reignite a push to significantly reduce drug prices by linking what the government pays for certain medications to lower prices in other countries, as reported by three individuals with knowledge of the situation who spoke to PMG.
Next week, Trump is anticipated to sign an executive order instructing aides to pursue the initiative known as "most favored nation" for a select group of drugs covered by the Medicare program. This approach aims to utilize the administration's authority to bring prices down.
The proposal remains in its preliminary stages and may undergo changes as aides fine-tune the details, according to those involved in the planning, who requested anonymity to discuss internal deliberations. The president has not yet personally given his approval to the plan.
On Tuesday, Trump hinted at a “very big announcement” slated for the coming week, which one source indicated is related to the drug pricing initiative. The other two individuals were uncertain if this announcement pertained to the drug prices but confirmed the likelihood of the drug pricing plan being unveiled soon.
“We’re going to have a very, very big announcement to make — like as big as it gets,” Trump stated. “It will be one of the most important announcements that have been made in many years about a certain subject.”
If Trump proceeds with the order, it would signify a significant clash with the well-funded pharmaceutical industry.
In 2018, Trump had proposed a similar initiative, but it struggled to gain momentum due to significant pushback from the drug industry. He attempted to implement the policy again in the final months of his first term, but a court blocked the effort, ruling that the administration had not followed the correct procedures for its implementation. The incoming Biden administration subsequently chose to rescind the policy.
On Wednesday, White House press secretary Karoline Leavitt was noncommittal about the initiative.
“The President will make a big and historic announcement on Monday. Until then, everyone can keep guessing!” she remarked.
Recently, Trump has become increasingly focused on lowering drug prices, urging aides to discover policies that could significantly reduce the costs of medicines, as reported by two sources familiar with the developments.
Trump’s approval ratings have diminished in recent weeks, largely due to his tariff policies unsettling markets and raising concerns about inflation and shortages of consumer goods.
Initially, White House officials encouraged congressional Republicans to include a "most favored nation" provision in their large-scale legislation, linking Medicaid drug prices to the lower rates that other developed countries pay. However, this proposal faced resistance within the GOP conference and is unlikely to make it into the final legislation, according to one source familiar with the situation.
The White House is now expected to attempt to advance the drug pricing initiative independently, utilizing existing authorities to implement its "most favored nation" model.
If finalized, this initiative is expected to provoke substantial opposition from the pharmaceutical industry, which has cautioned that the approach could hinder companies' capacity to develop new medications. Additionally, it could lead to new legal challenges.
This latest order from Trump will likely resemble his initial proposal, but will contain even fewer specifics regarding the targeted drugs, according to one of the sources familiar with the matter.
Jessica Kline for TROIB News
Next week, Trump is anticipated to sign an executive order instructing aides to pursue the initiative known as "most favored nation" for a select group of drugs covered by the Medicare program. This approach aims to utilize the administration's authority to bring prices down.
The proposal remains in its preliminary stages and may undergo changes as aides fine-tune the details, according to those involved in the planning, who requested anonymity to discuss internal deliberations. The president has not yet personally given his approval to the plan.
On Tuesday, Trump hinted at a “very big announcement” slated for the coming week, which one source indicated is related to the drug pricing initiative. The other two individuals were uncertain if this announcement pertained to the drug prices but confirmed the likelihood of the drug pricing plan being unveiled soon.
“We’re going to have a very, very big announcement to make — like as big as it gets,” Trump stated. “It will be one of the most important announcements that have been made in many years about a certain subject.”
If Trump proceeds with the order, it would signify a significant clash with the well-funded pharmaceutical industry.
In 2018, Trump had proposed a similar initiative, but it struggled to gain momentum due to significant pushback from the drug industry. He attempted to implement the policy again in the final months of his first term, but a court blocked the effort, ruling that the administration had not followed the correct procedures for its implementation. The incoming Biden administration subsequently chose to rescind the policy.
On Wednesday, White House press secretary Karoline Leavitt was noncommittal about the initiative.
“The President will make a big and historic announcement on Monday. Until then, everyone can keep guessing!” she remarked.
Recently, Trump has become increasingly focused on lowering drug prices, urging aides to discover policies that could significantly reduce the costs of medicines, as reported by two sources familiar with the developments.
Trump’s approval ratings have diminished in recent weeks, largely due to his tariff policies unsettling markets and raising concerns about inflation and shortages of consumer goods.
Initially, White House officials encouraged congressional Republicans to include a "most favored nation" provision in their large-scale legislation, linking Medicaid drug prices to the lower rates that other developed countries pay. However, this proposal faced resistance within the GOP conference and is unlikely to make it into the final legislation, according to one source familiar with the situation.
The White House is now expected to attempt to advance the drug pricing initiative independently, utilizing existing authorities to implement its "most favored nation" model.
If finalized, this initiative is expected to provoke substantial opposition from the pharmaceutical industry, which has cautioned that the approach could hinder companies' capacity to develop new medications. Additionally, it could lead to new legal challenges.
This latest order from Trump will likely resemble his initial proposal, but will contain even fewer specifics regarding the targeted drugs, according to one of the sources familiar with the matter.
Jessica Kline for TROIB News
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