Millions of Americans rely on prescription medications, but for many, the cost has become a serious burden.

However, there’s a potential shift on the horizon that could make those drugs more affordable.

President Donald Trump is looking to bring down the price of medications by using a policy from his first term aimed at making drug prices more aligned with international standards.

The “Most Favored Nation” Proposal

Next week, Trump is set to sign an executive order directing federal health agencies to implement a new pricing model for certain drugs covered by Medicare.

The idea behind this is to ensure the U.S. doesn’t pay more for these drugs than the lowest price charged in other countries, a strategy known as the “most favored nation” pricing model.

This would apply to various prescription drugs, including those used in healthcare settings like chemotherapy treatments.

The Cost Difference

In many developed countries with single-payer healthcare systems, governments can negotiate directly with drug manufacturers, often securing lower prices.

In contrast, the U.S. operates under a privatized, fragmented healthcare system, which means drug companies have far more control over pricing.

As a result, Americans can pay up to 10 times more for some medications compared to people in other nations.

This stark difference has fueled calls for change, with many pushing for a more affordable system for U.S. consumers.

Industry Concerns

While the proposal has the potential to reduce prices, it’s not without its critics.

Pharmaceutical industry leaders are raising alarms that the new policy could hurt profits and disrupt innovation in the industry.

One executive even described it as the “biggest existential threat” to U.S. biosciences and innovation.

The Road Ahead

Though the proposal is still in the final stages and has yet to be officially approved, Trump hinted at a major announcement soon, calling it one of the most significant to come in years.

This would mark the president’s second attempt to enact such a policy.

During his first term, he tried to introduce a similar plan, but it faced fierce opposition from the pharmaceutical industry.

Just before leaving office, he made one last push, but a judge blocked it from moving forward.

The Impact of High Drug Prices

Americans have long struggled with the high cost of prescription drugs, and some prices have become so inflated that states are taking action.

Last year, for example, Florida became the first state allowed to import cheaper medications from Canada, thanks to a special exemption from the FDA.

Among the drugs seeing price hikes are EpiPens, which soared from just under $100 to more than $600 in just a decade, and insulin, which increased by more than 1,000% from $21 in 1999 to $332 in 2019.

The Global Comparison

In 2019, Americans paid $1,126 per capita on prescription drugs, far higher than in comparable countries.

The U.K. had the lowest prescription drug costs at just $285 per capita, followed by Sweden at $378 and Australia at $434.

In comparison, the U.S. paid more than double that amount.

These disparities highlight the growing issue of drug affordability in the U.S., with more than 75% of American adults reporting that prescription drug costs are unaffordable.

What Comes Next?

As the policy takes shape, the big question remains: Will it succeed in lowering prices for Americans?

With widespread support for drug price reform and the continued struggle with unaffordable medications, this new push may have the potential to change the landscape of prescription drug pricing in the U.S.

However, with fierce opposition from the pharmaceutical industry, the road ahead is uncertain.