Prescription drugs taken by millions could soon become more affordable under a new executive order from President Donald Trump. 

Trump is considering bringing back a policy from his first term that would ensure drug companies do not charge Americans more than they charge consumers in other countries.

As reported by officials aware of the strategy, Trump is expected to sign an executive order in the upcoming week that will direct federal health agencies to implement a ‘most favored nation’ pricing model for certain medicines under Medicare.

The model is designed to lower costs by ensuring the US pays no more than the lowest price charged elsewhere. 

In many developed countries, single-payer systems allow governments to negotiate directly with pharmaceutical companies. 

But in the US, a fragmented, privatized system gives drugmakers broad pricing power — with some medications costing up to 10 times more than abroad. 

The order would mark a major shift in how pharmaceutical companies operate and could lead to lower drug prices for American consumers.

Industry experts caution that this decision could jeopardize profits and stifle innovation, with one executive describing it as the most significant ‘existential threat to the industry and U.S. biosciences innovation.’

More than 75 percent of American adults say the cost of drugs is unaffordable

Three people familiar with the matter told Politico the proposal is still being finalized and Trump has not approved any plans, but he did tease a ‘very big announcement’ that would be coming next week.

The president said: ‘We’re going to have a very, very big announcement to make — like as big as it gets.

‘It will be one of the most important announcements that have been made in many years about a certain subject.’

Trump proposed a similar policy during his first term but it failed to gain support and faced intense pushback from the pharma industry.

In one last ditch effort, he tried again to push it through months before his first term ended but a judge stopped it. 

That plan would have had American drug prices tied to what comparable countries, including Canada, Germany and the UK, were paying for medications included in Medicare Part B. 

Medicare Part B insurance typically covers drugs that are injected or infused, used with infusion pumps or nebulizers, medication for kidney failure, some vaccines and some transplant and immunosuppressant drugs.

However, not all of these are covered. Part B primarily covers the costs only of medications that are administered in healthcare facilities or by doctors. 

At the time, it was estimated the order would have saved American taxpayers more than $85billion over seven years. 

One of the drugs covered by Part B is Parsabiv, used to treat hyperparathyroidism – an overactive parathyroid gland, which is located behind the thyroid in the neck. Without insurance the cost is about $1,112 for a 5 milliliter treatment. In the UK, the cost is £163.92, or $218. 

President Donald Trump said to expect a ‘very big announcement’ next week

Sensipar, a drug used to treat chronic kidney disease. For a treatment regimen of 30 pills, the cost is $871 in the US. In Canada, it is about half the price at $448. It is the least expensive in New Zealand, costing just under $400 for 30 pills. 

Some drug prices have gotten so out of control that last year, the FDA granted permission to Florida to be the first state allowed to import less expensive medications from Canada. 

Among the medications that have surged in price are EpiPens, life-saving medication used to treat a deadly allergic reaction. They increased from a little less than $100 to more than $600 in a decade. 

And the price of insulin, vital for the management of diabetes, rose more than 1,000 percent in two decades, from $21 in 1999 to $332 in 2019. 

Additionally, a KFF report found the US paid $1,126 per capita on prescription medications in 2019, compared to $552 for a comparable country.

In the UK, it was the lowest at $285 per capita; Sweden saw a prescription medication spending of $378 per capita and Australia was third lowest at $434.

And more than 75 percent of American adults say the cost of drugs is unaffordable.