In a move that underscores his commitment to the American people, President Trump has initiated a campaign to lower drug prices in the United States.
Unlike his predecessors, who often made empty promises without delivering, Trump has identified the culprits responsible for the inflated drug prices in America: middlemen, government bureaucracy, and European price controls.
As reported by Breitbart, President Trump has taken a firm stance against the Pharmacy Benefit Managers (PBMs), the middlemen who inflate drug prices by approximately 50 percent. PBMs, along with large insurance companies and hospitals, exploit a relatively unknown government program, 340B, to pocket an additional $66 billion or 10 percent. The remaining amount is taken by government middlemen through statutory rebates and fees.
In a bold statement in December, Trump declared, Were going to knock out the middleman. Were going to get drug costs down at levels that nobody has ever seen before. The horrible middleman that makes more money, frankly, than the drug companies, and they dont do anything except theyre a middleman.
PBMs negotiate drug prices and rebates with manufacturers, but instead of passing the savings on to patients, they keep the majority for themselves. This unethical practice is one of the reasons why Trump and the Federal Trade Commission are taking action against the largest PBMs.
Trump's administration is determined to either eliminate PBMs or significantly reduce their influence over drug pricing. During his first term, Trump's rebate rule would have compelled PBMs to deliver billions in savings for seniors. However, this rule was scrapped by Biden in his Inflation Reduction Act, costing seniors billions and enriching PBMs. Reinstating the rebate rule would return billions to seniors and lower their drug prices.
In a recent move, Trump signed an executive order to make healthcare prices transparent. The White House stated, When healthcare prices are hidden, large corporate entities like hospitals and insurance companies benefit at the expense of American patients. Price transparency will lower healthcare prices and help patients and employers get the best deal on healthcare. This executive order will expose the abuse of the 340B program and further lower drug prices by forcing middlemen to reveal their true prices.
Trump's strategy also includes making Europe pay its fair share for drug development. For years, Americans have borne the high cost of drug development while Europe and other wealthy nations impose price controls on American exports, forcing pharmaceutical companies to sell below market value. This practice not only shifts the burden of research and development costs onto American consumers but also creates shortages and deprives European patients of life-saving cures.
Trump is set to renegotiate international trade agreements to pressure foreign governments to pay fair market prices for pharmaceuticals. In a similar vein to his approach with NATO allies, Trump will hold European nations accountable for paying fair prices for pharmaceuticals, rather than relying on American taxpayers.
The America First drug policy is a testament to Trump's commitment to bring transparency and competition to the pharmaceutical market. By reforming PBMs and 340B, curbing the influence of middlemen, and ending global free-riding, the Trump administration is poised to deliver the lower prescription drug prices that Americans need. This is the essence of America First drug pricing.
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