Trump signs executive order to lower drug prices in US, ends rebate to middlemen

American President Donald Trump, on September 13, revealed that he has signed a new executive order to lower the drug prices in the US by linking it those in other nations. In a Twitter post, Trump said that he would assure that US residents get the drugs at the same price as people in the other nation. In addition, the new order termed as 'My Most Favored Nation', would also put an end to rebates which benefit the middlemen.  

'Prices are coming down fast' 

Earlier in July, the Republican president had signed an executive order that required Medicare, the US govt healthcare scheme for senior citizens, to tie prices for drugs to those paid by other nations. In addition to this, there were three other orders signed by rump which aimed at reducing drug prices by reducing importation rules or cutting medicare payments to drug companies. However, all these orders, signed with an aim to gain public trust before the Nov 3 elections could not be implemented due to industry pushback.

Read: COVID-19: Trump Signs Four Executive Orders To Lower Prescription Drug Prices

Read: Trump Signs Executive Orders To Reduce Drug Prices

Out of the four orders signed, one of the orders would now allow for the legal importation of cheaper prescription drugs from countries like China. Another order would require discounts from drug companies now captured by middlemen to be passed on to patients. Furthermore, another order seeks to lower insulin costs, while the fourth, which may not be implemented if talks with drug companies are successful, would require Medicare to purchase drugs at the same price that other countries pay. 

Trump, in his first term, had promised to tackle drug prices, however, the will to address the issue appeared to have faded away. Nearly four years later, Trump’s order to slash drug prices comes amid coronavirus pandemic, which has only exacerbated the need for prescription drug reforms. It is also believed that Trump’s latest move comes as the election nears and Democrats have been hammering Republicans on the issue of health care, particularly a Trump-backed lawsuit to overturn the Affordable Care Act. 

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