Posted on Wednesday, May 14, 2025
|
by AMAC Action
|
0 Comments
|
AMAC Action applauds President Donald J. Trump for signing a sweeping new executive order aimed at one of the most urgent and long-standing challenges facing our members and all American seniors: the high cost of prescription drugs.
In a move that directly delivers on one of his core campaign promises, President Trump is taking decisive action to ensure that patients stop overpaying for the medicines they depend on. This bold executive order, part of a broader vision to restore fairness and transparency in the healthcare system, tackles the longstanding inequity that has forced American consumers to subsidize drug discounts for wealthy nations overseas.
The facts are as troubling as they are unacceptable. Although the United States represents less than five percent of the world’s population, Americans fund roughly 75 percent of global pharmaceutical profits. Meanwhile, foreign governments negotiate deep discounts from pharmaceutical manufacturers, who then recoup their losses by charging Americans—especially our seniors—markedly higher prices.
President Trump’s executive order breaks this cycle of injustice by directing the U.S. Trade Representative and the Secretary of Commerce to hold foreign countries accountable for pricing practices that drive up costs for Americans. It also empowers the Secretary of Health and Human Services (HHS) to establish a mechanism allowing patients to purchase prescription drugs directly from manufacturers at the “Most-Favored-Nation” (MFN) price—the lowest price that manufacturers charge any economically comparable country.
If drug manufacturers fail to cooperate and offer MFN pricing, the order authorizes HHS to pursue aggressive regulatory actions to force transparency, reduce costs, and end anti-competitive practices. This is exactly the kind of leadership AMAC members have called for – putting patients before profits and holding Big Pharma accountable.
“It’s great that President Trump is telling the world that American patients will no longer fund the majority of the innovation and research & development for new therapies drug companies produce and then market worldwide,” said AMAC Action Senior Vice President Andy Mangione. “Seniors living on fixed incomes should see a significant financial benefit while gaining better access to life-saving medications as a result of this order. Now, Congress must act and pass the budget resolution that contains measures to reform pharmacy benefit managers (PBMs) that should reduce drug costs even further.”
This executive order builds upon President Trump’s track record of standing up for seniors. In his first term, he advanced reforms to prevent Medicare from paying more for drugs than other nations. Unfortunately, the Biden administration rescinded that initiative before it could take effect.
The contrast is clear. While the Biden administration’s so-called “negotiated prices” under Medicare were still on average 78 percent higher than prices in comparable countries, President Trump is pushing for real relief with bold action and concrete results. Some medications could see price reductions of as much as 30 to 80 percent for some patients.
This latest order notably seeks to further lower costs for low-income patients by promoting massive discounts on life-saving medications. It also paves the way for greater availability of generics and biosimilars and strengthens price transparency measures that President Trump championed during his first term.
But while this executive order is a major step forward, the battle is far from over.
One of the greatest obstacles to true reform in prescription drug pricing remains the opaque and monopolistic practices of pharmacy benefit managers. PBMs, who serve as the middlemen in the pharmaceutical supply chain, have in recent years displayed a troubling lack of transparency in their business practices. The consolidation of power among a handful of PBMs has led to serious concerns that they may be abusing their position—capturing discounts meant for patients and driving up out-of-pocket costs for seniors who can least afford it.
As Mangione notes, Congress must now act to reform PBMs and introduce real accountability to the system. Reforming PBMs is critical not only to ensuring the success of President Trump’s executive order, but also to building a healthcare system that truly works for the American people.
That’s why AMAC members are leading the charge against the influence of PBMs and demanding a better deal for seniors. Through grassroots engagement, legislative advocacy, and public awareness campaigns, AMAC Action continues to fight for fairness in drug pricing and push for a system where seniors are no longer burdened by hidden fees, murky contracts, and inflated costs.
President Trump’s latest executive order marks a defining moment in this fight. It sends a clear message that the days of American patients footing the bill for global drug discounts are coming to an end. It delivers real hope to millions of seniors who have struggled for too long to afford their prescriptions. And it reinforces AMAC’s top healthcare priority: putting our members—and all American seniors—first.
Read the full article here
