Trump to Sign Executive Order on Prescription Drug Pricing, Promises 59% Cut

WASHINGTON, May 12 (Reuters) - U.S. President Donald Trump plans to sign an executive order on prescription drug pricing on Monday that aims to align the United States with what other countries pay, a move he said on social media would be a cut of 59%.

The executive order will pursue "most favored nation" pricing, which would require pharmaceutical companies to offer their drugs to Medicare at the same prices they charge in other developed countries. This approach could significantly reduce costs for American consumers and government healthcare programs.

"Tomorrow, I will be signing an Executive Order implementing a 'MOST FAVORED NATION' policy on drugs, meaning the United States will pay the lowest price of any nation in the world," Trump stated on his social media platform. "This will result in a reduction of 59% in drug prices."

His new estimate followed comments he made on Sunday, when he said the order would result in cuts ranging from 30% to 80%. The White House has not yet released specific details on how the pricing mechanism would work or which drugs would be affected.

"Americans have been paying the highest prices in the world for prescription medications for too long," said a White House spokesperson. "This executive order represents a significant step toward ensuring Americans no longer subsidize lower drug prices in other countries."

The pharmaceutical industry has historically opposed such measures, arguing they would reduce funding for research and development of new medications. Industry representatives warn that implementing international reference pricing could limit access to new treatments.

Health policy experts remain divided on the potential impact. Some suggest the order could face legal challenges and implementation hurdles, while others believe it represents a meaningful attempt to address one of the most pressing healthcare concerns for American consumers.

The move comes as healthcare costs continue to be a major concern for voters ahead of the November election. Previous attempts to implement similar drug pricing reforms have faced significant resistance from pharmaceutical companies and their lobbying groups.

Medicare, which provides health insurance for approximately 60 million Americans who are 65 and older or have disabilities, is prohibited by law from negotiating drug prices directly with manufacturers. This executive order appears designed to circumvent that restriction by using international prices as a reference point.

The administration has not yet detailed a timeline for implementation or specified which drugs would be prioritized under the new pricing structure.

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