WASHINGTON—President Trump signed a wide-reaching executive order on Monday directing drugmakers to lower the prices of their medicines to align with what other countries pay. Analysts and legal experts said the order would be difficult to implement.
The order will give drugmakers price targets in the next 30 days and will take further action to lower prices if those companies do not make "significant progress" towards those goals within six months of the order being signed.
At a press conference today, Trump said that the government would impose tariffs on companies if their prices in the U.S. did not match those in other countries. He was seeking cuts of between 59% and 90%.
"Everybody should equalize. Everybody should pay the same price," Trump said.
The United States pays the highest prices for prescription drugs, often nearly three times more than other developed nations. Trump tried in his first term to bring the United States in line with other countries but was blocked by the courts.
HDA released a statement in response to the executive order (EO):
“As a sector saving the health care system approximately $63 billion annually, HDA and the nation’s pharmaceutical distributors share the Trump administration’s desire to reduce the cost of healthcare for all Americans. However, we are deeply concerned that the MFN approach — including the broadly referenced direct-to-consumer and importation provisions — could negatively impact access for providers and patients, as well as the long-term stability of the supply chain.
“HDA distributor members deliver 10 million medicines each day, connecting 1,200 manufacturers to 330,000 healthcare providers, pharmacies and other sites of care across the country. They do so while operating on the narrowest profit margins in healthcare (0.3 percent). This relentless focus on effectiveness and efficiency helps ensure providers get the right medications, on time, to provide the best care possible to their patients. As the administration implements various provisions within this Executive Order, it is critical that the pharmaceutical supply chain remains efficient and secure. Providers, patients and our healthcare system rely on it.
“While we have significant concerns about the EO as currently proposed, HDA and all of our members are committed to working with the White House to review and consider policies that lower out-of-pocket costs for American patients while improving access to quality care, supporting innovation, and maintaining a strong and resilient supply chain.”
