What’s in it and it will work out?

US President Donald Trump has signed an executive order aimed at reducing high prescription drug prices and long-term consequences are far from clear.

Referring to the numbers that patients in other countries pay much less than Americans for pharmaceuticals, Trump said he would order drug addicts to reduce prices in the US.

He advertised this step as “one of the next” executive orders in the US history, claiming that prices would fall “almost immediately, by 30% to 80%”.

But experts are very skeptical of claims, and the stock market steps indicate that investors believe that they will have little direct effect.

The US has a particularly complex health care system – including a large private insurance industry, combines employer and public insurance programs for the elderly and poor, known as Medicare and Medicaid respectively.

In many other developed countries, more centralized systems mean that officials may agree on drug rates, and in some cases refuse to buy if they consider the price too high.

In 2021 government accounting Comparison with Australia, Canada and FranceAnd they found that the prescription medicines were on average two -four times more expensive in the United States.

The politicians of both US political parties sought for costs. During the White House announcement on Monday, Minister of Health Robert F Kennedy -Jelling noted that the prices were concerned about the Democrats and the main purpose of the presidential campaigns of the socialist Senator Bernie Sanders.

Both Trump in the first term, and former President Joe Biden tried to resolve this issue, in particular, the cost of rescue drugs such as insulin, but prices in the USA remain stubbornly high.

Speaking at the White House on Monday, Trump and his health officials have accused the lack of progress in pharmaceutical lobbying efforts and great donations to Congress members.

“Drug lobby is the strongest lobby,” Trump told reporters. “But starting today, the US will no longer subscribe to medical care to foreign countries what we do.”

It should also be noted that Trump’s trade tariffs – which he consistently used to threaten other countries – can further increase costs. Earlier, Trump said he would be taxed in the US.

Trump’s order is much wider than previous cost reduction efforts – however, many details still need to be developed.

The formulation directs US officials to make sure that drug expenses made by foreign countries do not lead to “unjustified or discriminatory” prices for Americans.

But what is covered by these conditions is unclear – as the question, what measures the White House will take when “unreasonable” practices are identified.

The White House also wants more products to sell more products directly to consumers – cutting off insurance companies and pharmaceutical payments on payments – and look into drug imports from foreign countries where they are sold at lower prices. Previously, this idea came into the blockage blocks through safety and trade rules.

The official said the order on Monday was the start of negotiations between the US Department of Health and Human services (HHS) and industry.

This order is also suggested to receive the status of the most committed nation (MFN) – that is, drug addicts will be proposed to match the lowest drug price when selling US consumers.

“Big Pharma will either fulfill this principle voluntarily, or we will use the power of the federal government to ensure that we pay the same price as other countries,” Trump told reporters.

It was unclear what mechanism would use the White House to punish drugs that refuse to voluntarily perform.

According to Alan Sagger, a healthcare policy, drug prices are very opaque. Drug manufacturers can easily claim that they fulfill the order by highlighting the prices that they already regularly provide at very high retail prices, he said BBC.

“Will they act? Can.

“Will it signal the durable and meaningful reduction of unusually high drug prices in the United States, it is very unclear,” he said. “It’s rhetoric, not reality.”

Trump’s preview on statement has suffered prices for major drug manufacturers such as Pfizer, Eli Lilly and GSK in the UK.

But they arranged a rapid recovery, united after the administration shared their plans – indicates that investors do not expect the steps to have a lot of impact.

To try to retain the profit in the US, narcotics can simply leave other countries in which they sell their products cheaper, according to researchers Darius Lakdoval and Dana Goldman from the University of South California.

Researchers also said that foreign governments regularly underestimated the true value of drugs for patients and that “the transition to a European pricing model in the US will lead to a shorter and less healthy life for Americans.”

Meanwhile, it is unclear how low prices for prescription medications fit into the Kennedy’s agenda “Make America healthy”. Health secretary has consistently emphasized the diet and physical activity as the key to improving the health of Americans – and criticized many pharmaceutical products, including vaccines and drugs for the treatment of mental illness.

However, any potential decline in drug prices is likely to be popular with Americans – since polls consistently indicate that high costs cause the main problem when it comes to the US health care system.

C Michael White, Professor of the Pharmacy University Connecticut, said the results of the Trump administration at drug prices “will be minimal for many Americans”, but any attempts to greater transparency and less expenses “are a positive step”.

But it is expected that this order will face the problems of the pharmaceutical industry in the courts and congress.

Industrial groups are largely opposed to the executive order and say it will be counter -productive – potentially refusing drug supply and research means, making little to stop high costs.

Stephen J. UBL, President of Pharmaceutical Studies and America Manufacturers, said in a statement that “the import of foreign prices from socialist countries will be a bad deal” for US patients.

John F Krouli, President of the Biotechnology Organization, called the status of MFN “a deeply undertaken proposal that would devastate biotechnology companies in our country” potentially refusing to fund research.

“Patients and families are not trade in the trade war, but this is how they are referred to – first through the proposed tariffs for our country’s medicines, which are now with foreign prices in the name of justice.”

But Alan Sager, Professor of Boston University, was skeptical of the industry’s arguments. He noted that the money used to study drugs was spent before profit, and suggested that there may be other ways of financing research – such as big cash prizes for medicines from specific diseases.

Professor Sager suggested that real drug prices will depend on the president’s attention.

“Given the obvious public vacation on many topics, he simply did not understand what he will remain with this problem or that he will be ready and will be able to act effectively,” he said.

With Natalie Sherman’s reporting in New York