This morning, President Trump announced an executive order concerning prescription drug costs here in the U.S.
It’s a well known fact that many prescription drug prices are priced so high that, even with insurance, it has a negative impact upon those with low or fixed incomes. Especially seniors. The high prices of prescriptions, no matter the spin, weren’t fixed by Obamacare. In fact, I’d submit that Obamacare made things worse.
That said, this executive order by President Trump is one that attempts to level the playing field world wide, not just here in the United States. You see, other countries pay less, FAR LESS for prescription drugs than American citizens do.
President Trump is signing a historic Executive Order to significantly reduce drug prices for Americans.
— Karoline Leavitt (@PressSec) May 12, 2025
This EO will help bypass costly middlemen and bring the prices Americans pay for prescription drugs in line with those paid by other nations.
Other Presidents merely talked… pic.twitter.com/KTD37JonpH
Again, this is about President Trump wanting to level the playing field and ensure Americans are no longer paying sky high prices for medicine while other countries are paying less.
“I will be instituting a MOST FAVORED NATION’S POLICY whereby the United States will pay the same price as the Nation that pays the lowest price anywhere in the World,” he added.
The US spends $400 billion on prescription drugs every year — often triple what other countries spend and typically more than any other nation.
We spend nearly triple on our medicine while citizens in other countries…don’t. Interesting.
Far from demonizing pharmaceutical companies for high prices, Trump focused his fire on countries, particularly in the European Union, for negotiating drug prices so low that they leave the United States to subsidize the global costs of innovation. He is directing his administration to investigate countries that “extort drug companies by blocking their products unless they accept bottom line and very low dollar amounts for their product, unfairly shifting the cost burden onto American patients.”
In exchange for going to bat for pharmaceutical companies to get better pricing aboard, Trump expects them to offer “most favored nations” pricing — essentially the lowest cost of drugs paid by the wealthiest countries — in the United States. The order directs the Centers for Medicare and Medicaid Services to share price targets with companies within 30 days.
Democrats are now whining about how this will hurt Big Pharma. Except that they want us to ignore that they’ve consistently campaigned on lowering costs. Yet have done nothing. Why? Because they are in the tank with the pharmaceutical companies. But it will hurt those companies! Will it, will it really?
Our friend Beege found out about some interesting moves that Big Pharma has been quietly making these last months. It seems they’ve read the tea leaves and have been quietly telling the EU that its time to step up with the facilities and money, or they are packing up and leaving for the United States.
European pharma companies warned the European Commission president at a meeting on Tuesday that U.S. tariffs would expedite the industry’s shift away from Europe and toward the United States.
Pharma trade lobby EFPIA, whose members include European pharma giants Bayer (BAYGn.DE), opens new tab, Novartis (NOVN.S), opens new tab and Novo Nordisk (NOVOb.CO), opens new tab, said it had called on EU President Ursula von der Leyen to push for “rapid and radical action” to mitigate the “risk of exodus” to the United States
I’d say that’s…pretty blunt. Especially as it’s made clear that the EU has been standing in the way of expansion, innovation, and helping them remain competitive world-wide. The EU certainly loves regulations. And with the tariffs hanging over their head, along with this new prescription drug executive order, will they change their course?
It’s worth keeping in mind what the price differentials are when it comes to the cost of medicine here versus overseas. Especially when insurance companies here are prone to LIMITING the amount prescribed and how many refills before they say NO altogether.
It’s a funny and relatable story, but President Trump makes his point very clearly about U.S. drug costs versus overseas costs.
President Trump describes how his "seriously overweight" friend, who takes the "fat shot drug" pays much less for the shot in Europe than in America. pic.twitter.com/Io2NofW24h
— Townhall.com (@townhallcom) May 12, 2025
I admit, I laughed at the phrase “fat shot drug.” That said, when a drug costs $1300 here in the U.S., and only $88 in England, there’s a problem that needs to be resolved.
However, with this prescription drug EO and Big Pharma’s discussions overseas, I’m with Beege in wondering what levels of 3D chess President Trump is playing.
That said, if the cost of medicine is lowered, it will help a great many people. Remember the Epipen issue? That cost is still high even today. Why? Because Joe Biden put the kibosh on the rule issued during President Trump’s Administration that would’ve capped the prices of insulin and epipens.
Don’t tell me that the Democrats work to lower or even cap costs of medicine such as insulin when they stayed silent when Biden reversed Trump’s rule.
There’s more at play than working to lower the cost of prescription drugs. It will be interesting to watch what happens next.
Feature Photo Credit: prescription medicine and cost via iStock, cropped and modified
“Democrats are now whining about how this will hurt Big Pharma. Except that they want us to ignore that they’ve consistently campaigned on lowering costs.”
Reflexive TDS – the worst kind.
“Save the criminal illegal immigrants!”
“Save the bureaucrats!”
“Save Big Pharma!”
None of these have the same ring as “Save the rain forest!”, but they ARE trying.
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