Will Trump’s 17 Letters to CEOs Promise Lower Drug Prices?
Americans pay more for prescriptions than nearly any other country, sometimes more than double. To address this, President Trump sent letters to 17 pharmaceutical CEOs encouraging them to cooperate in lowering their rates in the U.S. While these measures may take time, patient assistance programs like Simplefill can help patients access affordable medications now.
Learn more about President Trump’s plan and what your options may be if you’re unable to wait out the negotiations.
What Role Will the Administration’s Most-Favored-Nation Policy Play in Price Reduction?
Recently, President Trump signed an executive order calling for a most-favored-nation (MFN) drug-pricing policy. The order seeks to address the difference in prescription drug costs the United States pays compared to other developed nations.
The administration has pointed out that the U.S. pays significantly higher prices than other countries, leaving citizens unable to get their medications and further straining an already overburdened healthcare system. In fact, Americans pay 2.5 times more for prescription drugs than patients in other developed nations (RAND Corporation, 2021).
Who Received Letters from President Trump?
As part of the initiative, President Trump has sent letters to some of the world’s largest pharmaceutical companies, including:
- Johnson & Johnson
- Sanofi
- AstraZeneca
- AbbVie
- Boehringer Ingelheim
- Novartis
- Bristol Myers Squibb
- Amgen
- Genentech
- Gilead Sciences, Inc.
- Pfizer
- EMD Serono
- Novo Nordisk
- GSK
- Regeneron Pharmaceuticals
- Merck
- Eli Lilly
The letters stated the president’s wishes for fairer rates and provided a compliance deadline of September 29.
What Is President Trump Asking For?
In the 17 letters, President Trump requested that pharmaceutical companies extend most-favored-nation pricing to Medicaid while also agreeing not to offer better rates to other countries.
He’s also looking to lock in direct-to-customer and direct-to-business sales, which would eliminate further costs and allow consumers to receive MFN pricing without added middleman fees.
What Did the Letters Say to Pharmaceutical CEOs?
In the letters, President Trump warned of the actions the government can take to ensure compliance. Although everything is still voluntary, that can change if the companies don’t cooperate. The administration reserves the right to take rulemaking actions to impose MFN pricing.
There’s also the option of bringing in medications from other countries to compete with domestic drugs, which can help lower costs. To accomplish this, the administration will offer waivers via the Food and Drug Administration.
The wording of the letters makes it clear that the government also has the right to modify or revoke drug approvals if it feels they aren’t safe or have been improperly marketed.
Can the MFN Plan Lower Prescription Drug Costs?
The most-favored-nation plan appears to present the possibility of lower prescription drug costs, at least theoretically. Whether it will translate to meaningful results is not yet clear. One worry is that pharmaceutical companies will no longer have the necessary incentive to pursue innovation.
Some companies may also hesitate to put new drugs on the market in other countries for fear of setting a price that the U.S. can then reference. These are issues that could make drug shortages more severe, raising prices even more. For more on prescription drug pricing strategies, read our blog on How the MAHA Strategy Could Change Your Prescription Costs.
Working With Simplefill to Afford Your Prescriptions
Those living with chronic conditions like asthma or fibromyalgia don’t have time to wait for these legislative interventions to work. If you’re struggling to afford your medications every month, patient assistance programs can provide the help you need. Right now, nearly 3 in 10 U.S. adults say they have skipped doses or not filled prescriptions because of cost (Kaiser Family Foundation, 2022).
At Simplefill, we make it easy to access some of the best discounted rates in the country. We work directly with pharmaceutical companies, pharmacies, and government programs to help people get the treatment they need.
Get Affordable Access to Prescription Medications
Simplefill is a full-service prescription assistance company that researches, qualifies, and maintains patients’ enrollment in all sources of assistance available to them.
Apply today by calling 877-386-0206. A caring Simplefill representative will contact you within 24 hours to discuss your application and, if qualified, enroll you in the program.
Frequently Asked Questions
Trying to understand your options? We can help. Explore the answers to some of these common questions:
What Will Happen if the Pharmaceutical CEOs Don’t Comply by the Deadline?
It’s not yet clear whether the administration will take immediate action against the pharmaceutical companies or what such action might look like.
Will the Most-Favored-Nation Plan End Up in Court?
The MFN plan will most likely be challenged in court, as many companies see it as an overreach on the part of the government.
Are There Any Other Policies in Place to Curb Medication Costs?
The Biden administration passed the Inflation Reduction Act, which granted Medicare the power to negotiate pricing for some high-cost prescription medications.