WASHINGTON, D.C. – Patients For Affordable Drugs Now Executive Director Merith Basey issued the following statement in response to President Trump’s new Executive Order (EO) on drug pricing:
“We completely agree with President Trump that Americans shouldn’t be paying the highest drug prices in the world for the exact same brand-name prescription drugs. And we broadly support international reference pricing — including ‘Most Favored Nation’ style policies — that, if well designed, could help rein in inflated drug prices and deliver savings for patients.
This Executive Order is a step in the right direction, but without additional guardrails, it leaves room for pharmaceutical companies to continue gaming the system at the expense of patients. The reality is: drug companies set high prices in the U.S. because U.S. policy lets them – unlike other high income countries that negotiate lower prices.
With nearly nine in ten Americans demanding lower prices and greater accountability from drugmakers, the administration can pursue an even better deal, in line with other high income nations, including through the popular Medicare Negotiation program.
While outstanding questions remain, P4AD is committed to working to ensure this executive order is implemented in a way that delivers lower drug prices for patients. We’ll continue to monitor implementation closely and urge the administration to stay focused on patient-centered reforms that hold the true driver of high drug prices accountable: drug corporations.”
BACKGROUND
Several aspects of the EO raise immediate questions:
- It’s unclear what immediate actions the administration will take — or how it defines “aggressive” actions that may follow if manufacturers choose not to voluntarily comply with MFN pricing targets.
- The EO offers limited details about how HHS will enforce these targets or what mechanisms it would use to encourage compliance in the absence of new legislation or clearly defined regulatory authority.
- While the order outlines a direct-to-consumer model at MFN prices, it does not provide information on how such a system would operate, whether it would be integrated with public or private insurance, or how HHS would establish and oversee it.
- The EO also proposes revisiting drug importation policies, which could face logistical, regulatory, and trade challenges — particularly given the supply limitations in countries like Canada.
- The EO does not specify which drugs would be impacted or how the proposal would interact with the existing Medicare Drug Price Negotiation Program under the Inflation Reduction Act.
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Patients For Affordable Drugs Now, is the only national, patient advocacy organization focused exclusively on policies to lower drug prices. We empower and mobilize patients and allies, hold accountable those in power, and fight to shape and achieve system-changing policies that make prescription drugs affordable for all people in the United States. P4ADNow is bipartisan and does not accept funding from organizations that profit from the development or distribution of prescription drugs. To learn more visit; PatientsForAffordableDrugsNOW.org.