President Donald Trump has unveiled a dramatic executive order aimed at reducing prescription drug prices by up to 80 percent, describing it as “one of the most consequential executive orders in our country’s history.”
The announcement came via TruthSocial on Sunday, with the formal signing scheduled for Monday morning at the White House.
The executive order will implement a “Most Favored Nation’s Policy,” ensuring Americans pay the same prices for medications as the lowest-paying nation worldwide.
Trump claims this policy will bring fairness to America and save the country “trillions of dollars” in healthcare expenditures over time.
In his detailed social media announcement, Trump highlighted the longstanding issue of Americans paying substantially more for prescription medications than people in other countries.
He noted that U.S. citizens often pay five to ten times more for “the same drug, manufactured in the exact same laboratory or plant, by the same company,” creating an unsustainable burden on American families.
Trump expressed frustration with pharmaceutical companies’ justifications for the price disparities, writing that drug manufacturers claimed research and development costs were “borne by the ‘suckers’ of America, ALONE.”
This practice, he suggested, has disadvantaged American consumers for decades while benefiting foreign healthcare systems.
The president also accused Democrats of making deals with pharmaceutical companies in exchange for campaign contributions, stating, “Not with me, and not with the Republican party.”
Trump predicted that drug prices would decrease by between 30 and 80 percent “almost immediately” under his new policy.
He also suggested that prices would “rise throughout the World in order to equalize” as part of bringing fairness to American consumers who have long subsidized lower drug prices in other nations.
Before revealing the specifics of his policy, Trump built anticipation on social media, sharing on both X and Truth Social: “My next TRUTH will be one of the most important and impactful I have ever issued. ENJOY!”
This executive action comes at a critical time for healthcare affordability in America.
Approximately 91 million U.S. adults—over a third of the adult population—currently cannot access quality healthcare due to cost barriers, according to the West Health-Gallup Healthcare Affordability Index.
The Daily Mail reported that despite roughly 305 million Americans having health insurance, an estimated 26 million remain uninsured and must pay hospital bills out-of-pocket.
The financial strain of medical expenses affects millions of households, with four in ten adults reporting medical or dental debt from unpaid bills.
The situation has become so dire that over 70 million Americans avoid doctor visits entirely due to financial concerns, potentially worsening health outcomes and creating greater long-term costs for the healthcare system.
Trump’s policy aims to address this widespread problem of care avoidance due to cost.
The Daily Mail also noted that the announcement follows reports from January 2024 that drug manufacturers increased prices on more than 770 medications.
Novo Nordisk raised the price of Ozempic, a diabetes drug often used for weight loss, by 3.5 percent to nearly $970 per month, putting it out of reach for many patients who could benefit from the medication.
Eli Lilly similarly increased the cost of Mounjaro, another diabetes medication used for weight loss, by 4.5 percent to approximately $1,070 monthly. AstraZeneca implemented three percent price hikes on several treatments, including those for blood cancer and asthma, adding to the financial burden on patients with serious conditions.
Pfizer’s price increases were even more substantial, with a six percent rise for Xeljanz, which treats autoimmune diseases, and 7.9 percent increases for cancer drugs Ibrance and Xalkori.
