Posted on Sep 18, 2020, 7 p.m.
Replacing the older previously signed July executive order President Trump has recently signed a new executive order to expand efforts in lowering the cost of prescription drug prices in America.
This new order now covers prescription drugs dispensed at pharmacies as opposed to just health clinics and doctor’s offices. Meaning that those who are covered under Medicare Part D will now be able to take advantage of lower drug prices to match those paid by other countries for the same drug.
“Just signed a new Executive Order to LOWER DRUG PRICES!” Trump announced on Twitter. “My Most Favored Nation order will ensure that our Country gets the same low price Big Pharma gives to other countries,” Trump added. “The days of global freeriding at America’s expense are over and prices are coming down FAST! Also just ended all rebates to middlemen, further reducing prices.”
It is no secret that other countries pay much lower prices than America does for many of the most widely used drugs, prior to the executive order there was no way to get prices any lower since Medicare is prohibited from negotiating prices that it pays to drug makers. But all of this may be coming to change as the executive orders are meant to force pharmaceutical companies to give Americans the same pricing that other countries have been paying.
Congress has been reluctant to pass any drug reform legislation, prompting the President to take matters into his own hand on behalf of the American people in need of financial burden to help them afford life-saving medications such as insulin, EpiPens, and seizure prescriptions.
“These providers should not be receiving discounts for themselves while charging their poorest patients massive, full prices,” Trump stated about the need for his executive order. “Under this order, the price of insulin for affected patients will come down to just pennies a day from numbers that you weren’t even able to think about. It’s a massive cost savings.”
The executive order also opens the door to import prescription drugs from other countries such as Canada where drug costs are a mere fraction of what they are in America. Medicare will also be able to purchase the same drugs from other nations at big savings which will help to reduce overall healthcare costs to patients and taxpayers alike.
Before signing the executive order the President gave pharmaceuticals a one-month deadline to fix the problem, to which thus far the industry has not reported making any changes. As he promised the deadline passed with no changes prompting the signing to keep true to one of his campaign promises.
Naturally, the pharmaceutical industry is not happy at all, suggesting that this is a reckless distraction that will impede its ability to respond to current issues or issues in the future. To put a bit of perspective into the “impediment” according to research the pharmaceutical market was worth $1.3 trillion in 2019, and the top 10 companies account for around $392.5 billion of that.
According to a report published in JAMA between 2000 - 2018, the big 35 pharmaceuticals received a combined revenue of $11.5 trillion with a gross profit of $8.6 trillion. Yes, by all means, let’s not impede on those trillions, not billions - TRILLIONS of dollars in profits while some people can not even afford to buy the drugs they need to survive.
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