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How would Trump's drug price cuts work?
The Guardian
|May 14, 2025
Donald Trump has ordered sweeping cuts to the prices of prescription drugs in the US in an effort to bring them in line with other developed countries.
A sharp fall in drugmakers' share prices on Monday was reversed amid scepticism that the shake-up would be as severe as promised.
What is Trump proposing?
His executive order directs his administration's health secretary, Robert F Kennedy Jr, to send price targets to the pharmaceutical industry and kick off negotiations within 30 days to reduce prices.
If talks hit an impasse, Kennedy is instructed to enforce the "most favoured nation" pricing model and limit US prices to the lowest rates other wealthy countries paid. The president said this would amount to cuts of between 59% and 90%.
Health officials said that, unlike a similar push in Trump's first term, the new policy would target not just Medicare, the US government-funded programme that covers people aged 65 and older, but also Medicaid, for people on low incomes, and treatments covered by private health insurance.
What impact, if any, it would have on millions of Americans with private health insurance.
Dit verhaal komt uit de May 14, 2025-editie van The Guardian.
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