Mon May 12 12:49:14 UTC 2025: **Trump to Sign Executive Order Lowering Medicare Drug Prices**
Washington, D.C. – President Donald Trump announced he will sign an executive order on Monday aimed at significantly reducing the cost of some prescription drugs for Medicare beneficiaries. The order will direct the Department of Health and Human Services to link Medicare payments for drugs administered in doctors’ offices to the lowest prices paid by other countries, a policy known as “most favored nation.”
This move, which Trump has championed since before his first term, is intended to address long-standing concerns about high drug prices in the U.S. compared to other developed nations. The order is likely to impact certain drugs covered by Medicare Part B, such as cancer treatments and injectables, potentially saving billions of dollars for the government. However, the “trillions” claimed by the President may be an overestimation. More common prescription drugs obtained at pharmacies are not expected to be affected.
The pharmaceutical industry is expected to strongly oppose the order, arguing that it would harm profits, stifle innovation, and give foreign governments undue influence over U.S. drug pricing. A similar executive order attempted during Trump’s first term was blocked by a court order under the Biden administration.
While both parties have expressed concerns over drug costs, a lasting legislative solution has yet to materialize. The Trump administration previously reported that the U.S. spends double the amount on certain drugs compared to some other countries. Medicare Part B drug spending alone exceeded $33 billion in 2021. This executive order represents a renewed attempt to tackle this issue through executive action.
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