On May 12, President Trump, fulfilling his campaign promise to make America affordable again, signed an executive order directing pharmaceutical companies to lower prescription drug prices so American patients no longer pay higher rates than consumers in other countries. The President’s executive order establishes a process for federal agencies to communicate with drug manufacturers and creates a mechanism for patients to buy drugs at a “most-favored-nation” price.
But what has happened since the Trump executive order? Drugmakers have largely opposed Trump’s efforts to deliver parity in consumer drug prices to Americans. Some have done this quietly, negotiating in the background. Others have tried to find loopholes, exploring ways to achieve parity by raising prices abroad rather than lowering them in the U.S. as the executive order intended. And others have expressed more public opposition, stating they are nowhere near an agreement with the Trump administration on drug prices.
Meanwhile, President Trump took decisive action last week to address delays by pharmaceutical companies, issuing letters to 17 pharmaceutical companies demanding they comply with the directives outlined in the executive order to lower prescription drug prices by Sept. 29, or risk government action.
Unfortunately for Americans, the longer drug companies drag their feet, the longer they’ll pay sky-high drug prices, effectively subsidizing discounted prices abroad.
According to one study, prescription drug prices are, on average, 2.78 times higher in the U.S. than in 33 other high-income countries. According to the Organization for Economic Co-operation and Development, the gap is even larger for brand-name drugs, with U.S. brand prices at least 3.22 times higher on average.
Making matters worse – Big Pharma companies not only set high prices for drugs, but also continuously raise them. For example, EpiPen prices skyrocketed from about $100 in 2007 to $650 in 2021, even as parents face rising allergy diagnoses in kids. Additionally, inhalers cost American families up to 30 times more than those in Europe, despite being on the market for decades.
As a result, Americans spend a jaw-dropping $1,564 per person on prescription drugs per year – more than five times the $294 spent in Mexico and more than double the $665 spent in the United Kingdom.
Americans can no longer afford this and are no longer willing to foot the bill for consumers abroad. That’s why Congress must act immediately and pass legislation to achieve what Trump started with his executive order — bringing immediate international parity to drug pricing.
President Trump’s executive order provides a good starting point. If the pharmaceutical industry resists, the executive order directs the Department of Health and Human Services – the largest purchaser of prescription drugs – to enforce it and take further steps to reduce costs. It’s time for HHS to advance this initiative. In addition, there are 180 million Americans covered by private insurance who would benefit from an most-favored-nation pricing if it were made a congressional mandate.
Americans want to see government take decisive action. In fact, a new poll released by the Pharmaceutical Reform Alliance found that 77% of American voters say it is critical or a high priority that drug prices be lowered, while 78% support President Trump’s most-favored nation executive order – including 61% of Democrats. Most importantly, 86% of voters say they are more likely to support congressional candidates ready “to force Big Pharma to lower prescription medication costs” in America.
It’s clear that the American people are demanding change. In light of such strong voter sentiment, Congress must enact laws ensuring that a patient in Georgia or Missouri pays the same for blood pressure medicine as someone in Germany or Canada. Americans are tired of being ripped off, and will no longer settle for subsidizing prescription drug prices for the rest of the world.
