President Donald Trump signed an executive order on Monday aimed at dramatically reducing prescription drug prices in the United States by aligning them with the lower prices paid in other developed nations.
On Sunday, President Donald Trump announced via Truth Social his intention to sign an executive order aimed at reducing prescription drug prices in the United States by 30% to 80%.
He described this initiative as “one of the most consequential Executive Orders in our Country’s history.”
President Trump: For many years the World has wondered why Prescription Drugs and Pharmaceuticals in the United States States of America were SO MUCH HIGHER IN PRICE THAN THEY WERE IN ANY OTHER NATION, SOMETIMES BEING FIVE TO TEN TIMES MORE EXPENSIVE THAN THE SAME DRUG, MANUFACTURED IN THE EXACT SAME LABORATORY OR PLANT, BY THE SAME COMPANY???
It was always difficult to explain and very embarrassing because, in fact, there was no correct or rightful answer. The Pharmaceutical/Drug Companies would say, for years, that it was Research and Development Costs, and that all of these costs were, and would be, for no reason whatsoever, borne by the “suckers” of America, ALONE.
Campaign Contributions can do wonders, but not with me, and not with the Republican Party.
We are going to do the right thing, something that the Democrats have fought for many years. Therefore, I am pleased to announce that Tomorrow morning, in the White House, at 9:00 A.M., I will be signing one of the most consequential Executive Orders in our Country’s history. Prescription Drug and Pharmaceutical prices will be REDUCED, almost immediately, by 30% to 80%.
They will rise throughout the World in order to equalize and, for the first time in many years, bring FAIRNESS TO AMERICA! I will be instituting a MOST FAVORED NATION’S POLICY whereby the United States will pay the same price as the Nation that pays the lowest price anywhere in the World.
Our Country will finally be treated fairly, and our citizens Healthcare Costs will be reduced by numbers never even thought of before. Additionally, on top of everything else, the United States will save TRILLIONS OF DOLLARS. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN!
The executive order, signed on Monday, implements a “Most Favored Nation” (MFN) pricing policy. This policy mandates that the United States will pay the same price for prescription drugs as the country that pays the lowest price globally.
The initiative targets Medicare and Medicaid costs by aligning U.S. drug prices with those in other countries, where costs are typically much lower.
“American patients were effectively subsidizing socialist healthcare systems,” Trump said during the signing ceremony at the White House, flanked by Health Secretary Robert F. Kennedy Jr. and CMS Administrator Mehmet Oz.
“We’re going to cut out the middlemen and facilitate the direct sale of drugs at the most favored nation price, directly to the American citizen.”
Key Provisions of the Executive Order:
- 30-Day Deadline for Price Reductions: Pharmaceutical companies have 30 days to lower their drug prices to align with international rates. Failure to comply may result in further regulatory actions.
- Targeting Middlemen: The order criticizes pharmacy benefit managers (PBMs) and companies like CVS and Cigna for inflating costs, leading to a market reaction where Cigna shares dropped nearly 6% and CVS over 3%.
- Combating Anti-Competitive Practices: The Federal Trade Commission is urged to address anti-competitive behaviors in the pharmaceutical sector.
Even some Democrats, such as Rep. Ro Khanna of California, have expressed approval for Trump’s plan. Khanna posted on X that he would introduce the executive order as written to become legislation and asked for Republican co-sponsors.
I am willing to introduce @realDonaldTrump EO exactly as written as legislation to be bipartisan & get something done for the American people. Any Republicans willing to co-sponsor? Let’s then get Speaker Johnson to call a vote on it. https://t.co/9wsGDmCYjB
— Ro Khanna (@RoKhanna) May 12, 2025
But not everyone is on board with putting America first.
According to senior congressional reporter Andrew Desiderio of Punchbowl News, Senate Majority Leader John Thune (R-SD) has signaled that while Trump’s intentions are clear, codifying the executive order into law might be “fairly controversial” in Congress.
Desiderio wrote, “Thune says Trump’s EO on prescription drug pricing would be “fairly controversial” if done legislatively. “He clearly wants to lower drug prices. It’s something that, like a lot of other issues, he’s had a passion about and believed in for a long time. So he’s acting on that.””
He added, “Thune and other [Republican] leaders have long opposed price-fixing efforts for prescription drugs.”
Thune and other R leaders have long opposed price-fixing efforts for prescription drugs
— Andrew Desiderio (@AndrewDesiderio) May 12, 2025
Republican strategist and CNN contributor Shermichael Singleton weighed in on the new report.
“I guess Senator John Thune doesn’t have working-class people in his state? Maybe if Congress, which Republicans control, actually did their damn job, the president wouldn’t have to take executive action to look out for hardworking Americans getting ripped off by big pharma.”
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