My opinion is that he will Fail and Drug Prices will Not Come Down... However, The main goal of this executive order is to have a Sound Bite - Photo Op on television... Where he looks like he's going to do something for the American people... With Both RFK Jr and Dr Oz smiling and waving at the cameras!
If you check out the details of the deal, he says that he has 30 days before anything has to actually happen... And by then we will have had at least 20 more massive crises and everyone will have forgotten about this...
But that was the total failure...
The Inflation Reduction Act of 2022, signed under Biden, already allows Medicare to negotiate prices for certain high-cost drugs, a policy Trump could expand or modify. He could also pressure Congress to pass broader reforms, like capping out-of-pocket costs or increasing generic drug competition. His administration could further use the FDA to fast-track approvals for generics or biosimilars, reducing market exclusivity for brand-name drugs.
However, challenges abound. The pharmaceutical industry wields significant lobbying power, spending over $350 million annually to influence policy. Drug pricing is entrenched in a complex web of insurers, pharmacy benefit managers (PBMs), and supply chains, making systemic change difficult.
Posts on X reflect polarized views: some users cheer Trump’s promises to slash prices, citing his past rhetoric, while others doubt his ability to overcome Big Pharma’s influence, pointing to limited results from his first term.
In short, Trump has tools to push for lower drug prices, but systemic inertia, legal hurdles, and political trade-offs limit how far and fast he can go. Success depends on his administration’s focus, congressional support, and ability to navigate industry resistance.
Explain Medicare negotiations
Role of PBMs
For example, in 2020, he signed executive orders to tie Medicare drug prices to cheaper international prices (the "most favored nation" rule) and to allow importation of drugs from Canada. These moves aimed to reduce costs but faced legal challenges, industry pushback, and limited implementation before his term ended.
The Inflation Reduction Act of 2022, signed under Biden, already allows Medicare to negotiate prices for certain high-cost drugs, a policy Trump could expand or modify. He could also pressure Congress to pass broader reforms, like capping out-of-pocket costs or increasing generic drug competition. His administration could further use the FDA to fast-track approvals for generics or biosimilars, reducing market exclusivity for brand-name drugs.
However, challenges abound. The pharmaceutical industry wields significant lobbying power, spending over $350 million annually to influence policy. Drug pricing is entrenched in a complex web of insurers, pharmacy benefit managers (PBMs), and supply chains, making systemic change difficult.
Previous attempts, like the 2020 orders, were stalled by lawsuits and bureaucratic delays. Any aggressive price controls could also face accusations of stifling innovation, as drug companies argue high prices fund R&D.
Posts on X reflect polarized views: some users cheer Trump’s promises to slash prices, citing his past rhetoric, while others doubt his ability to overcome Big Pharma’s influence, pointing to limited results from his first term.
Web sources note that while Medicare negotiations have lowered prices for some drugs (e.g., 10 drugs saw price cuts in 2024), broader impacts remain incremental.
In short, Trump has tools to push for lower drug prices, but systemic inertia, legal hurdles, and political trade-offs limit how far and fast he can go. Success depends on his administration’s focus, congressional support, and ability to navigate industry resistance.
Explain Medicare negotiations
Role of PBMs