Name: Trump Signs Executive Order Asking Companies to Lower Drug Prices
Uploaded: 2025-05-12T23:10:00Z
Duration: 2 min 20 s
Description: President Trump signed an executive order aiming to reduce the price of prescription drugs. WSJ’s Jared Hopkins explains what we know about the plan.

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President Trump signed an executive order aiming to reduce the price of prescription drugs. WSJ’s Jared Hopkins explains what we know about the plan. Photo: Chris Kleponis/Press Pool; Shutterstock

https://m.wsj.net/video/20250512/67eda73e-bca1-4abf-9eff-bf21fecf808e/2/hls/manifest-hd-wifi.m3u8

President Trump signed an executive order aiming to reduce the price of prescription drugs. WSJ’s Jared Hopkins explains what we know about the plan.

Trump Signs Executive Order Asking Companies to Lower Drug Prices

Ozempic costs 10 times more in the United States than in the rest of the developed world. 10 times more, why? Why? What did we do?

President Trump signed an executive order on Monday that essentially directs his administration to prepare what's called a most-favored-nation drug policy. The executive order lays out a plan that's going to direct the government and HHS Secretary Robert F. Kennedy to communicate to drug companies what the US price targets are.

President Trump is saying to our European partners is, you've gotta raise the amount that you're paying for those drugs and pay for your share of the innovation, that the United States is no longer subsidizing that.

The US pays about three times as much in prescription drugs as countries overseas. The idea is that because the US pays the highest prescription drug prices in the world, that if you're tying those to other countries that are paying lower prices, that it will bring down the cost of prescription drugs in the United States. If the drug companies and the government are not aligned or do not sort of see eye to eye on this, then essentially the order is directing the government to come up with its own process, its own pricing plan here. Drug industry for years has actually been opposed to international referencing pricing, most-favored nations, or just more generally tying US prices to those overseas. And they generally have spoken to that this is going to harm innovation, it's gonna lead to fewer medicines.

We're gonna tell those countries, like those represented by the European Union that, you know, that game is up, sorry.

There's a couple sort of unknowns here, and they're pretty big, which is quite frankly who this is going to apply to. So the order doesn't specify whether or not any of this is about Medicare, which is seniors. Is it gonna be about Medicaid? Is it gonna be for commercial insurance? So a lot of this is like very, very early days.

Trump's Plan to Lower Drug Prices: Here's What We Know

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