May 15, 2025
FactCheck.org recently published an article featuring Rena Conti, Associate Professor of Markets, Public Policy, and Law, discussing how President Trump signed an executive order aiming to lower U.S. prescription drug prices by tying them to the lowest prices paid in other developed countries – a strategy known as “most favored nation” pricing.
He claimed the order could slash prices by up to 90%, but it lacks details on how that would happen. The U.S. pays nearly three times more for brand-name drugs than other countries, though generics are cheaper. Experts noted the vagueness of the plan, which echoes a previous Trump proposal that was blocked in court.
“I expect this will do little to advance Americans affordably accessing needed medicines,” Conti added.
While the order could theoretically reduce spending, experts say drugmakers might respond by raising international prices or limiting foreign access, which could undermine the intended savings.