Trump Administration Plans Drug Price Reforms Amid Industry Concerns

President Trump has issued a new executive order aimed at lowering prescription drug costs in the U.S., building on previous efforts to align domestic prices with those in other developed countries. The order directs agencies like the Department of Health and Human Services to update guidance for the Medicare Drug Price Negotiation Program, eliminate disparities in how small and large molecule drugs are treated, and recommend ways to stabilize and reduce Medicare Part D premiums. Additional instructions include streamlining drug importation pathways and conducting surveys to better align Medicare payments with acquisition costs. However, experts note the policy faces significant logistical, political, and industry hurdles, including concerns about potential disruptions to innovation in the pharmaceutical sector. While the order signals increased regulatory activity and potential future savings, critics argue that implementation could be slow, with meaningful price cuts for drugs like Ozempic and Wegovy not expected until at least 2028. Some also warn that recent administrative actions may actually make it harder for certain Medicare patients to afford high-cost medications in the short term.