BREAKING: President Trump Announces Executive Order to Cut Prescription Drug Costs
May 11, 2025
President Donald J. Trump announced this evening that he will be signing a new Executive Order aimed at drastically lowering prescription drug prices in the United States. The signing is scheduled for tomorrow morning at 9:00 AM from the White House.
According to the announcement, the new order will implement what’s known as a “Most Favored Nation” pricing model. This policy would require that the U.S. pay no more for a medication than the lowest price paid by any other country in the world. The goal is to align U.S. drug costs with global pricing standards and reduce the financial burden on American patients.
President Trump stated that the policy could bring immediate reductions of 30 to 80 percent on a wide range of medications. He framed the move as a long-overdue correction to a pricing system that has made the U.S. an outlier in global drug costs—despite the same drugs often being manufactured in the same labs and plants overseas.
The administration also projected that this policy could save the country trillions of dollars in long-term healthcare spending.
This marks one of the most sweeping actions to date in the effort to rein in pharmaceutical costs, and it could have major implications for patients, insurers, and drug manufacturers. How it will be enforced, and how the industry will respond, remains to be seen.
We’ll be following this story closely and providing updates as more details emerge.
Stay tuned to On The Pen for continuing coverage.
There is no mechanism by which this would work. Sorry, it will not do anything.
It shouldn't be that many times people find that it is cheaper to fly to another country to get their prescriptions than to buy it in the U.S. And in Illinois, our prescriptions are taxed.