The President of the United States, Donald Trump, signed a presidential decree on May 12 aimed at drastically lowering the prices of medications in the country.
La orden ejecutiva, titulada "Offer most favored nation pricing for prescription medications to American patients.", establece un conjunto de medidas para garantizar que los ciudadanos estadounidenses paguen precios similares a los que se ofrecen en otros países desarrollados.
According to the decree, the United States, which represents less than five percent of the global population, has been funding about three-quarters of the global profits of pharmaceutical companies.
Trump described this situation as a "blatant imbalance," stating that his administration will take action to put an end to this scheme.
“This is the most powerful decree regarding pharmacy prices and healthcare ever issued in the history of our nation,” said Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services, who was present in the Roosevelt Room of the White House for the signing alongside the president and Robert F. Kennedy Jr., Secretary of Health and Human Services.
The document states that the inflated price of medications in the United States has been subsidizing global innovation, while foreign health systems benefit from lower prices.
Hours before the signing of the decree, Trump had stated on his social media Truth Social that his administration would lower "the prices of medications by 59%", as well as reduce the costs of gasoline, energy, food, and "everything else."
In his characteristic style, the president concluded his message with a personal touch, saying, "No inflation! With love, DJT."
Trump also denounced that, for decades, Americans had been forced to finance the global costs of pharmaceutical companies, paying prices up to ten times higher than in other countries.
"For years, we were told it was due to research and development costs, but in the end, it was the 'fools' in America who paid for everything. That is over," he wrote.
The decree establishes several key provisions to ensure lower prices for American consumers:
- Most Favored Nation Policy: Americans must have access to the same low prices that are offered in other developed countries. If pharmaceutical companies do not comply voluntarily, the government will take further action to ensure compliance.
- Actions against foreign countries: The Secretary of Commerce and the United States Trade Representative must take measures to prevent foreign countries from benefiting from pharmaceutical advancements funded by the United States without paying fair prices.
- Direct sales to consumers: The Secretary of Health and Human Services will facilitate programs for drug manufacturers to sell directly to American consumers at the lowest price.
- Establishment of regulated prices: Within a period of 30 days, the authorities must inform the pharmaceutical companies of the most favored nation pricing objectives. If significant progress is not achieved, a regulation will be proposed to impose these prices.
- Compliance measures: In cases of anticompetitive practices, the Attorney General and the Federal Trade Commission may initiate legal actions.
- Importation of Medications: The importation of low-cost medications from other countries will be considered if their safety and quality can be guaranteed.
The decree poses a significant challenge for large pharmaceutical companies, which rely on revenue generated in the U.S. market to maintain their profit margins.
CNN clarified that "it is unclear whether Americans will see lower prices and what authority the United States government has to set drug prices in other countries."
Frequently asked questions about Trump's decree to reduce drug prices
What does the decree signed by Trump regarding drug prices aim to achieve?
The presidential decree signed by Donald Trump aims to dramatically reduce the prices of medications in the United States, ensuring that citizens pay prices similar to those in other developed countries. The order establishes that the U.S. will no longer subsidize healthcare for other countries and will take measures against the inflated prices of medications set by large pharmaceutical companies.
What is the "most favored nation" policy mentioned in the decree?
The "most favored nation" policy ensures that Americans pay the lowest price for medications available anywhere in the world. If pharmaceutical companies do not comply with these prices voluntarily, the government will take additional measures to ensure compliance.
What measures does the decree include to reduce the prices of medications?
The decree includes several key measures, such as the direct sale of medications to U.S. consumers, the establishment of regulated prices, and potential legal actions against anti-competitive practices. It also considers the importation of low-cost medications from other countries, as long as their safety and quality are ensured.
What has been the reaction of pharmaceutical companies to Trump's decree?
The decree poses a significant challenge for large pharmaceutical companies, which rely on revenues generated in the U.S. market. There is uncertainty about whether Americans will actually see lower prices and whether the government has the authority to regulate drug prices in other countries.
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