Trump promises to order that the US pay only the price other nations do
for some drugs
[May 12, 2025]
By WILL WEISSERT and AMANDA SEITZ
WASHINGTON (AP) — President Donald Trump says he'll sign an executive
order on Monday that, if implemented, could bring down the costs of some
medications — reviving a failed effort from his first term on an issue
he's talked up since even before becoming president.
The order Trump is promising will direct the Department of Health and
Human Services to tie what Medicare pays for medications administrated
in a doctor's office to the lowest price paid by other countries.
“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,” the president posted Sunday on his social media
site, pledging to sign the order on Monday morning at the White House.
“Our Country will finally be treated fairly, and our citizens Healthcare
Costs will be reduced by numbers never even thought of before,” Trump
added.
His proposal would likely only impact certain drugs covered by Medicare
and given in an office — think infusions that treat cancer, and other
injectables. But it could potentially bring significant savings to the
government, although the “TRILLIONS OF DOLLARS” Trump boasted about in
his post may be an exaggeration.
Medicare provides health insurance for roughly 70 million older
Americans. Complaints about U.S. drug prices being notoriously high,
even when compared with other large and wealthy countries, have long
drawn the ire of both parties, but a lasting fix has never cleared
Congress.
Under the planned order, the federal government would tie what it pays
pharmaceutical companies for those drugs to the price paid by a group of
other, economically advanced countries — the so-called “most favored
nation" approach.
The proposal will face fierce opposition from the pharmaceutical
industry.
It was a rule that Trump tried to adopt during his first term, but could
never get through. He signed a similar executive order in the final
weeks of his presidency, but a court order later blocked the rule from
going into effect under the Biden administration.
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 The pharmaceutical industry argued
that Trump’s 2020 attempt would give foreign governments the “upper
hand” in deciding the value of medicines in the U.S.. The industry
has long argued that forcing lower prices will hurt profits, and
ultimately affect innovation and its efforts to develop new
medicines.
Only drugs on Medicare Part B — the insurance for
doctor's office visits — are likely to be covered under the plan.
Medicare beneficiaries are responsible for picking up some of the
costs to get those medications during doctor's visits, and for
traditional Medicare enrollees there is no annual out-of-pocket cap
on what they pay.
A report by the Trump administration during its first term found
that the U.S. spends twice as much as some other countries in
covering those drugs. Medicare Part B drug spending topped $33
billion in 2021.
More common prescription drugs filled at a pharmacy would probably
not be covered by the new order.
Trump's post formally previewing the action came after he teased a
“very big announcement” last week. He gave no details, except to
note that it wasn't related to trade or the tariffs he has announced
imposing on much of the world.
“We’re going to have a very, very big announcement to make — like as
big as it gets,” Trump said last week.
He came into his first term accusing pharmaceutical companies of
“getting away with murder” and complaining that other countries
whose governments set drug prices were taking advantage of
Americans.
On Sunday, Trump took aim at the industry again, writing that 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.”
Referring to drug companies' powerful lobbying efforts, he said that
campaign contributions “can do wonders, but not with me, and not
with the Republican Party.”
“We are going to do the right thing,” he wrote.
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