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Trump drug prices Executive Order: What to know is

Trump drug prices Executive Order: What to know is

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President Donald Trump signed an executive regulation on May 12 and created the drug makers to reduce the prices of their medication so that they decide with the other countries.

Trump's command uses the US trade representative and the Ministry of Commerce for a 30-day period to give drug manufacturers the price goals. The government took further measures to reduce prices if these companies do not achieve “considerable progress” in the direction of these goals within six months of the signed order.

During his first term in 2020, Trump had promoted a similar “most preferred nation” rule for drug prices that would have been used for Medicare payments, but was later canceled by the Biden administration. The new executive order builds on this guideline by not restricting it to certain medication as part of Medicare, but also to the insurance of Medicaid and private sector, which is available on the commercial marker, said the spokesman for the White House, Kush Desai.

How much drug prices change from Trump's executive regulations remains unclear, although the president in a social media contribution on May 12 said that it was “59%, plus!” Later in the White House, Trump put the number between 59 and 80 percent before adding: “I even think 90%.”

Critics of the “most preferred nation” concept argue that pharmaceutical companies could play the system by granting business with foreign governments for discounts to maintain current drug prices in the USA, say that it could suffocate innovations in medicine if the pharmaceutical industry loses profits.

What does the Trump drug price say -executive order say?

The secretary for health and human services, Robert F. Kennedy Jr., will determine targets for price reductions in all markets in the USA within 30 days, an official from the White House said on May 12.

If no appropriate progress in relation to the price reduction goals is made, the health secretary will, according to the official, impose the most preferred pricing through a control creation.

How do US drug prices compare with other countries?

According to a report from 2024 of the Department of Health and Human Services, drug prices in the United States are almost three times higher than 33 comparison countries. Around 67 million Americans are enrolled in Medicare.

The binding of medication prices for medication to international prices is a strong other approach than the administration of the bidges deliberation to reduce the Medicare medication prices.

According to Bidens 2022 Climate and Health Protection, the Inflation Reducation Act, Medicare was authorized to negotiate prices with pharmaceutical companies about a limited number of medication.

Trump called the process when he set “equalization” and said that other countries had to pay for research and development.

“As of today, the United States will no longer subsidize the health care of abroad what we have done,” said Trump during the event of the White House.

The bidges have already negotiated lower prices for 10 widespread medication such as Xarelto or Eliquis, which will come into force in 2026. In January, Medicare announced another batch of 15 drugs that are subject to negotiations this year. These drugs included blockbuster diabetes and weight loss medication ozempish and pathy, a cost-saving step that becomes effective in 2027.

When asked how Trump's plan affects, the official of the White House said that the negotiations of the White House influence the Inflation Redutation Act and the negotiations of the White House that after the first round of drug price negotiations, prices are still “more than 200% higher than many countries”.

The official added that they considered this figure as inappropriate and that the Trump administration took measures to go beyond what was achieved in the law on reducing inflation reduction.

Democrats react to Trump's command

The financial committee of the Senate, the member Ron Wyden, D-Oregon, described Trump's command “all hat and no cattle”.

“Trump spent his entire first term in raving about Big Pharma, but in the end he always withdrawn instead of fighting for American seniors and families,” said Wyden in a statement.

Wyden said it was the democrats who have taken over Big Pharma by giving Medicare the authority to negotiate lower drug prices in the name of seniors and to limit their costs for expensive recipes.

“If Trump was serious about reducing pharmaceutical prices, he would work with the congress to strengthen the negotiations of the Medicare drug prices and not just sign a piece of paper,” he said.

Effects on drug discounts, insurance discounts unclear

Experts in drug price goods said to explain Trump's command how this will affect the complex network of pharmaceutical marsplies and insurance discounts in the country, which limit how many consumers are paid out of their own pocket. These discounts and discounts are used to finance certain Medicaid programs and reduce the premiums for health insurance, said Antonio Ciaccia, CEO of 46Brooklyn and experts in drug prices.

If these pharmaceutical discounts and discounts disappear, Ciaccia could endanger the financing of other health priorities. He added that Trump's executive order did not explain how this financing gap could be tackled.

“I don't see much like,” said Ciaccia. “And what is always rubbing when it comes to fixing drug price problems in the United States.”

Post: Joey GarrisonPresent USA Today; Reuters

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