Drug Prices STILL Soaring!

While drug prices continue to outpace income and inflation, President Trump’s executive order to match U.S. costs with global benchmarks has sparked debate—but the relief may be years away.

At a Glance

Trump’s executive order aims to lower U.S. drug prices by tying them to international rates

Prescription drug prices have risen 39% since 2014, outpacing inflation

Nearly 30% of Americans struggle to afford essential medications

Medicare’s ability to negotiate prices won’t activate until 2026

Pharma lobby warns the order could stifle innovation and increase foreign dependency

An Executive Order Meets a Grim Reality

President Donald Trump’s new executive order calls for immediate price reductions on brand-name drugs—mandating that Americans “pay what Europe pays.” This “most favored nation” pricing model tasks Health and Human Services Secretary Robert F. Kennedy Jr. with negotiating costs down for federal programs like Medicare and Medicaid.

Watch a report: Trump’s Drug Price Order Explained.

The idea, while popular with consumers, faces steep resistance. Critics—including pharmaceutical industry leaders—warn that forcing global parity could lead to reduced research budgets and increased reliance on overseas manufacturing. “Importing foreign prices from socialist countries would be a bad deal for American patients and workers,” argued Stephen J. Ubl, president of PhRMA.

Crisis by the Numbers

Since 2014, U.S. prescription prices have surged 39%, with brand-name drugs driving the majority of that growth. While generics and biosimilars offer cost-effective alternatives, they account for just 13% of total spending—highlighting systemic barriers in prescribing and insurance coverage.

Nearly one in three Americans report difficulty affording medications, with many leaving prescriptions unfilled or rationing dosages. Despite soaring spending, patients are left with fewer accessible options, growing resentment, and little faith in a healthcare system designed to help.

The disparity is staggering: even with April’s dip in inflation, the cost of medication remains a uniquely American burden—one that shows no signs of subsiding soon.

Waiting for Reform

While Trump’s order signals intent, the structural reforms needed to shift market dynamics won’t take effect until 2026, when Medicare can begin negotiating directly with manufacturers. Until then, the U.S. remains locked in a high-cost status quo.
Health economists argue that lasting solutions to rising prescription costs require bipartisan reform beyond executive orders or campaign promises. As costs increase, Americans are left watching and waiting. The pressing question is whether Washington can act quickly enough to close the affordability gap before millions are priced out of necessary medications.