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Trump Promises to Lower Drug Costs as House GOP Tries to Cut $880B From Medicaid

President Donald Trump signed an executive order on Monday aimed at cutting drug costs. Meanwhile, his fellow Republicans in the House are trying to gut Medicaid.
Trump’s executive order, “Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients,” is an attempt to “equalize evident price discrimination,” allowing Americans to pay the same price as other “comparably developed nations.”
“This abuse of Americans’ generosity, who deserve low-cost pharmaceuticals on the same terms as other developed nations, must end. Americans will no longer be forced to pay almost three times more for the exact same medicines, often made in the exact same factories. As the largest purchaser of pharmaceuticals, Americans should get the best deal,” the EO reads in part.
READ MORE: ‘Pushed Up to the Edge of the Cliff’: GOP Proposals Would Kick Millions Off Health Care
Prior to the announcement, Trump posted to Truth Social that “DRUG PRICES TO BE CUT BY 59%,” but did not provide details on where that figure came from. It is also unclear if the White House has the authority to enforce this order, according to NPR.
PhRMA President and CEO Steve Ubl dismissed the executive order, saying that it was other countries paying such low prices that drives up costs for Americans. Ubl implied that the executive order may require those countries to pay more.
“The Administration is right to use trade negotiations to force foreign governments to pay their fair share for medicines. U.S. patients should not foot the bill for global innovation,” Ubl said. “Importing foreign prices from socialist countries would be a bad deal for American patients and workers. It would mean less treatments and cures and would jeopardize the hundreds of billions our member companies are planning to invest in America – threatening jobs, hurting our economy and making us more reliant on China for innovative medicines.”
While Trump was promising to help American health care consumers on Monday, the night before, his colleagues in the House revealed legislation that would cut over $880 billion in Medicaid funding. Republicans say that the cuts will result in savings to the average American, but Rep. Frank Pallone (D-NJ) said “millions of Americans will lose their health care coverage,” according to the AP.
“Hospitals will close, seniors will not be able to access the care they need, and premiums will rise for millions of people if this bill passes,” Pallone continued.
Not all Republicans are on board with this bill. Sen. Josh Hawley of Missouri wrote a guest essay for The New York Times condemning the legislation. He called the bill “both morally wrong and politically suicidal.”
“If Republicans want to be a working-class party — if we want to be a majority party — we must ignore calls to cut Medicaid and start delivering on America’s promise for America’s working people,” Hawley wrote.
Image via Reuters
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