Overview

• President Trump signed an executive order requiring U.S. prescription drug prices to match the lowest rates paid by other developed nations.
• Federal agencies, including HHS and FDA, are tasked with setting price reduction targets within 30 days and enforcing caps within six months if manufacturers do not comply.
• The policy aims to reduce U.S. drug costs, which are currently 2.78 to 3.22 times higher than in peer nations, and could save trillions of dollars in healthcare spending.
• Pharmaceutical industry groups have condemned the order, warning it could jeopardize innovation and investment, and are expected to mount legal challenges.
• Details on specific drugs and insurance programs affected remain unclear, though the administration anticipates immediate cooperation from manufacturers.