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Will Trump’s new EO really lower prescription drug prices?

  • Americans pay the highest prescription drug prices in the world, with brand-name drugs costing over three times more than in other OECD countries.
  • The recent presidential executive order aims to make drug prices in the U.S. compatible with the lowest prices abroad, but critics fear it may lead to global price increases.
  • Concerns exist that if drug prices are lowered for public payers like Medicare and Medicaid, costs may be shifted to commercial payers, affecting both employers and employees.
  • Health Transformation Alliance advocates for value-based pricing to tie drug prices to medical results achieved and ensure fair prices that reflect the value created by the drugs.

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