It is no secret that America is one of the unhealthiest nations in the developed world. We pay more for prescriptions and healthcare than any other nation, with illness constantly ranking as the number one factor for bankruptcy filings. Donald Trump announced a new executive order that will cap the prices of prescription medications by granting the United States Most Favored Nation (MFN) status.
“For many years the World has wondered why Prescription Drugs and Pharmaceuticals in the United States States of America were SO MUCH HIGHER IN PRICE THAN THEY WERE IN ANY OTHER NATION, SOMETIMES BEING FIVE TO TEN TIMES MORE EXPENSIVE THAN THE SAME DRUG, MANUFACTURED IN THE EXACT SAME LABORATORY OR PLANT, BY THE SAME COMPANY??? It was always difficult to explain and very embarrassing because, in fact, there was no correct or rightful answer,” Trump wrote. “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,” Donald Trump posted on Truth Social ahead of the declaration.
The Department of Health and Human Services (HHS) will match the lowest prices for medications among the MFN, and has a 30-day deadline to get it done. Unlike other programs that fought for affordable medicine through Medicare, this initiative is going after the private insurance plans.
“I’m doing this for the American people,” Trump said at the White House discussing the executive order. “I’m doing this against the most powerful lobby in the world probably, the drug lobby.” Trump sought to implement drug cost caps during his first term but his order was overturned by a federal judge.
Three-quarters of Big Pharma’s profits come from American citizens, although the US only composes 5% of the global population. On average, brand-name drug medications are over 4X higher in America compared to other developed nations.
America permits pharmaceutical super PACs from outside the US to influence our politicians. Novartis, Novo Nordisk, Roche, and AstraZeneca all donated to candidates during the 2024 election period. Yet, everyone was concerned about foreign interference. Look at the most recent election. Eli Lilly, under the Lilly PAC, donated over $180,000 to politicians running for the House and Senate on the right and left. Then individual CEOs donated the maximum individual contribution permitted by law. CEO David Ricks paid off Republican Congressman Brett Guthrie from Kentucky and donated to two PACs, including the Carolina Victory Fund, which donates solely to Democratic candidates.
Johnson and Johnson has the J&J PAC that paid out $500,000 from 2023 to 2024 to both Republicans and Democrats. AbbVie has its own super PAC as well, and CEO Robert Michael pays into the PAC monthly. Merck & Co. has the Merck PAC and paid out over $300,000 to members of the House and Senate. CEO Robert Davis shelled out the maximum personal contribution to candidates on both sides. Amgen has the Amgen PAC and a CEO who also donates to candidates but favors Republicans. Pfizer, of course, has become a Democratic-leaning organization. The Pfizer PAC donated 63% of its funding to Democrats compared to 37% to Republicans.
Canada and the majority of European nations, for example, have an agency that negotiates the prices of pharmaceuticals. The pan-Canadian Pharmaceutical Alliance (pCPA) works directly with manufacturers on behalf of all provinces to ensure that prescription medications are fairly priced. America has no such agency or advocate, and Big Pharma can price medications as high as it wants. The new executive order will allow Americans to bypass all the middlemen and buy directly from manufacturers.
It is a mistake to believe that this new order is a price cap. The government is not setting a fixed government-mandated price for medications. Drug manufacturers must reference price points to those paid by other nations, and this does permit fluctuations and market-based adjustments. The industry already has wide margins and has been permitted to unfairly rob the American people as bought politicians turn a blind eye to the corruption. People may fear the billionaires in the Oval Office, but for one thing, they cannot be bought.
