President Trumpâs comments while signing an executive order aimed at reducing prescription drug prices misrepresented the role of foreign countries in U.S. drug pricing. The executive order requires drugmakers to lower prices within 30 days or risk future payment limits by the government. Experts clarify that U.S. drug prices are primarily inflated due to domestic negotiation practices rather than international influence. Research shows that prices in the U.S. significantly exceed those in other high-income countries, indicating a need for systemic reform in how medications are priced.
President Trump incorrectly blamed foreign nations for high U.S. drug prices, claiming they force companies into lower pricing, but U.S. pricing negotiations drive costs higher.
The new executive order mandates a deadline for drugmakers to lower prices or face government limits, emphasizing a shift in U.S. pharmaceutical pricing strategy.
Experts note that structural differences in drug pricing negotiations in the U.S. compared to other high-income nations largely account for the inflated U.S. costs.
According to a 2024 RAND report, U.S. drug prices are significantly higher than those in comparable countries, highlighting the urgent need for reform.
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