President Trump announced on Sunday, Sept. 13, that a new executive order signed by him will lower the price of drugs in the United States, by coming into line with drug prices in other countries. The new order comes just weeks before the next election and is a popular topic among voters.
“My Most Favored Nation order will ensure that our Country gets the same low price Big Pharma gives to other countries. The days of global freeriding at America’s expense are over,” Trump said in a Twitter post.
Just signed a new Executive Order to LOWER DRUG PRICES! My Most Favored Nation order will ensure that our Country gets the same low price Big Pharma gives to other countries. The days of global freeriding at America’s expense are over…
— Donald J. Trump (@realDonaldTrump) September 13, 2020
The order is an addition to others, which have been pending since July due to a solution needing to be found with the industry. Medicare will need to level out the prices of drugs, coming into line with the cost of drugs in other countries.
In July, the president signed four executive orders to allow reduced drug costs to consumers, as part of his commitment to cutting the price of prescription drugs before the Nov. 3 election.
“In addition to being unfair, high drug prices in the United States also have serious economic and health consequences for patients in need of treatment. High prices cause Americans to divert too much of their scarce resources to pharmaceutical treatments and away from other productive uses. High prices are also a reason many patients skip doses of their medications, take less than the recommended doses, or abandon treatment altogether. The consequences of these behaviors can be severe. For example, patients may develop acute conditions that result in poor clinical outcomes or that require drastic and expensive medical interventions,” said the president in a statement.
Medicare Part B and Part D drugs will be affected by the order, as an expansion on the earlier form of the directive. “It is the policy of the United States that the Medicare program should not pay more for costly Part B prescription drugs or biological products than the most-favored-nation price,” said the president in a statement.
The new executive order he referred to on Sunday had been delayed to allow his administration and the pharmaceutical industry to reach an agreement. As no agreement had been reached by Sunday, the White House said it had decided to move forward. The pharmaceutical industry was not happy with the move, reports The Hill.
“With scientists and researchers at America’s biopharmaceutical companies working around the clock to fight a deadly pandemic, it is simply dumbfounding that the Trump administration would move forward with its threat to import foreign price controls and the inevitable delays to innovation that will follow,” said Michelle McMurry-Heath, CEO of the Biotechnology Innovation Organization.