Drug Price Executive Order Unleashes Unlikely Critics

Is it only bad when Trump does it?

President Donald Trump issued an executive order (EO) yesterday (May 12) designed to reduce drug prices for American patients and taxpayers alike. The move is a moderate effort to work amicably with pharmaceutical companies to cut taxpayer costs for Medicare and Medicaid, shave price gouging by middlemen, and usher in bipartisan “equity” for American consumers. A few detractors issued paltry opposition, but the policy shift was widely hailed as overdue.

Lowering Drug Prices

Pharmaceutical stocks rose broadly following the president’s announcement, driven by optimism that the EO seeks industry cooperation instead of federal strong-arming. The order directs HHS Secretary Robert F Kennedy Jr. to communicate with industry executives to seek voluntary price reductions that, if successful, will lower costs for numerous drugs without cantankerous legal battles.

There is no dispute that Americans pay far more for medications than most other nations. These usually are medications developed by US corporations that are then sold abroad at much lower prices – a 2024 HHS report determined US drug costs were nearly three times higher than those of 33 comparison countries. Trump has long condemned this inequitable burden. In his first term, he sought to limit domestic drug pricing but was blocked by court challenges, and President Joe Biden rescinded his actions. The current effort is broader in reach and employs authority created in Biden’s Inflation Reduction Act to negotiate drug prices.

It’s hard to imagine why anyone wouldn’t want to reduce drug prices in the face of such unfair price gouging, but Trump naysayers knee-jerked in opposition. Sen. Bernie Sanders (VT-I), who has publicly pushed for lower prescription drug prices (while receiving substantial industry donations), appeared to support the oligarchy, denigrating the new EO by saying “his executive order will be thrown out by the courts.”

Disappointing Bernie

Bernie may be disappointed: Kennedy has power to negotiate lower prices, causing even “the Bern” to run short of objections to making America healthy again, or at least making healthcare more affordable. As if anticipating Sanders’ oppositional stance, Kennedy stated:

“I have a couple of kids who are Democrats, big Bernie Sanders fans. And when I told them that this was gonna happen, they had tears in their eyes — as if this is never gonna happen in our lifetime, and we finally have a president who is willing to stand up for the American people.”

If successful, the move will also shave billions of dollars off taxpayer costs for Medicare and Medicaid. Bernie & Co. will likely then howl that “Trump is cutting Medicare and Medicaid,” despite this being a win-win for patients and taxpayers alike. It’s almost like certain far-left agitators want tariffs to fail, egg prices to go up, and the stock market to crash – anything but see Trump accomplish good results for the American people.

Such sabotage is crumbling under effective border policies, fairer tariffs, increasing domestic production, improvements to public safety, and now lower drug costs. Kennedy and Trump both referenced the deplorable fact that Americans pay $1,300 domestically for a dose of Ozempic that costs $88 in London. Perhaps Bernie and his fellow travelers will file lawsuits to maintain that status quo, but the AARP, Pharmaceutical Research and Manufacturers of America (the industry’s main trade association), and other informed voices lauded the moderate approach of negotiating prices downward.

Diplomatic Success?

Many pharmaceutical manufacturers were receptive. As reported by The Wall Street Journal:

“’A spokesperson for Novo Nordisk, which makes drugs that have become popular for weight loss including Ozempic and Wegovy, said, ‘We agree that Americans need more access to affordable medication, and we will continue to engage with policymakers to develop and implement more effective solutions. We look forward to learning more about the measures discussed by the administration today and how they will work within the current U.S. healthcare system.’”

Americans being told that Trump seeks to gut Social Security and impoverish poor citizens will be pleased if the initiative of his latest executive order yields lower cash register prices for the drugs they depend upon. US medication imports from China quadrupled while Biden was president, and prescription drug charges rose more than 15% between January 2022 and January 2023, with 46% of 4,200 drugs on an HHS list during that period increasing at a faster rate than underlying inflation.

Kennedy stated that he has already been conferring with receptive pharmaceutical industry representatives. Perhaps Trump will be allowed to improve Americans’ lives and wallets without intervention by meddling federal district judges or the left-wing’s oligarchy.