New order aims to reduce prescription drug prices
(CNN, KYMA/KECY) - President Donald Trump has signed an executive order that aims to cut prescription drug prices.
A White House official says that this action makes it a promise to crack down on other countries' unreasonable practices that suppress drug prices.
The administration's executive order would apply to a wide range of drugs and prices on the commercial market that would also include Medicare and Medicaid.
The Department of Health and Human Services (HHS) would work to negotiate lower prices, and if that does not produce results, HHS would implement the "Most Favored Nation" rule.
The controversial policy from the Trump's first term would work to reduce drug costs by basing payments for certain medicines on their prices in other countries. "Most Favored Nation" was previously finalized in late 2020.
However, it was blocked by federal courts and then rescinded by then President Joe Biden. Trump's executive order comes as the administration has been considering imposing tariffs on pharmaceutical imports which could spark shortages of certain drugs.
