President Donald Trump has signed an executive order on drug pricing, aiming to ensure that American patients pay no more for medications than citizens of other wealthy nations. The initiative, part of a broader effort to balance innovation with affordability, seeks to eliminate the burden placed on American patients due to the significant price disparities between the U.S. and other developed countries. The order highlights the need for global accountability, as pharmaceutical companies profit heavily from the U.S. market, exacerbating the financial strain on patients.
The executive order is based on the stark reality that medications like a GLP-1 drug cost $88 in London but $1,000 in the United States, even after manufacturer discounts. This disparity is further compounded by the fact that pharmaceutical companies extract 70% of their profits from the U.S., which represents only 4% of the world’s population. Industry leaders have acknowledged the imbalance, with CEOs from four major American pharmaceutical companies and a foreign manufacturer expressing willingness to relocate to the U.S. to address the issue.
The U.S. Health and Human Services and Centers for Medicare & Medicaid Services (CMS) are empowered to implement the order, which seeks to ensure that other developed nations pay more, allowing Americans to pay less while maintaining the innovation pipeline. The plan is part of a strategy to prevent the U.S. from subsidizing global medical progress while other wealthy nations contribute disproportionately little. The effort is framed as a necessary step to protect patients and ensure fair access to essential treatments, particularly as more people in the U.S. face financial barriers to necessary medications.
Industry leaders have acknowledged the imbalance, with CEOs from four major American pharmaceutical companies and a foreign manufacturer expressing willingness to relocate to the U.S. to address the issue. However, the U.S. Health and Human Services and Centers for Medicare & Medicaid Services (CMS) possess the statutory authority to deliver on President Trump’s commitment, ensuring that other developed nations pay more and Americans pay less, maintaining the innovation pipeline.
The plan is part of a broader strategy to prevent the U.S. from subsidizing global medical progress while other wealthy nations contribute disproportionately little. The effort is framed as a necessary step to protect patients and ensure fair access to essential treatments, particularly as more people in the U.S. face financial barriers to necessary medications. The administration remains committed to ensuring that American patients are not unfairly burdened by the global healthcare system, even as pharmaceutical companies continue to extract significant profits from the U.S. market.
While prevention through healthier lifestyles remains our best strategy for reducing medication dependence, certain treatments will always be essential. The pharmaceutical industry has delivered remarkable advancements in cancer and autoimmune therapies that benefit patients worldwide. However, the administration remains focused on ensuring that American patients are not unfairly burdened by the global healthcare system.
The coming months will be decisive in achieving President Trump’s prescription for a healthier America—one where innovation thrives, and patients no longer shoulder an unfair share of the global healthcare burden. The administration is committed to ensuring that the U.S. remains a leader in medical innovation while also securing fair access to essential treatments for its citizens.
CMS, with Dr. Mehmet Oz at the helm, extends beyond payment reform to fundamentally realigning care delivery incentives. This initiative will protect safety nets for vulnerable populations while addressing the financial pressures facing state partners and federal programs—particularly Medicaid, which has seen dramatic growth in both enrollment and costs.
The order is supported by industry leaders who have acknowledged the issue and are willing to relocate to the U.S. to address the problem. However, the administration emphasizes that the U.S. possesses the authority to ensure that other developed nations pay more, allowing Americans to pay less while maintaining the innovation pipeline. The executive order represents a critical step in addressing the significant price disparities in the global pharmaceutical market and ensuring that American patients are not unfairly burdened by the financial strain of accessing essential medications.
The administration remains committed to ensuring that American patients are not unfairly burdened by the global healthcare system, even as pharmaceutical companies continue to extract significant profits from the U.S. market. The executive order is seen as a necessary step toward achieving a more equitable and affordable healthcare system for all Americans, regardless of their location in the world.