Trump suggests executive order on drug prices, with a scope that is unclear

President Trump on Friday said his administration is writing an executive order to require drug manufacturers to offer the United States government among the lowest prices in the world, in comments that were not immediately clear to many experts on the nation's health care system.

President Trump on Friday said his administration is writing an executive order to require drug manufacturers to offer the United States government among the lowest prices in the world, in comments that were not immediately clear to many experts on the nation's health care system. "We're working on a favored-nation clause, where we pay whatever the lowest nation’s price is," Trump said. Until Friday, the White House had made no public mention of a broad executive order. The administration is working on a plan that would use an index of international drug prices to set the price that Medicare pays for some drugs that are administered by doctors, such as cancer treatments, an idea which the pharmaceutical industry and many medical providers have vigorously opposed. The plan is still under review from the Office of Management and Budget and may begin as a 5-year pilot program next year. But it would apply to only a small subset of the drug market, and would not affect the prices paid for more typical prescription drugs that are sold at community pharmacies. An executive order on drug prices would most likely have no force of law on its own, but could direct HHS to pursue or expand this approach.