A closer analysis of Trump’s “miracle plan” to slash medical drug prices
May 14, 2025
∙ Paid
(This is Part-2; For Part-1, go here)
My recent article on this subject… jumped to the bottom line: the drugs will continue to maim and kill millions of people because they’re poisons.
But since so many MAHA/MAGA people, including Kennedy, are gushing like kids on Christmas morning over Trump’s Order to cut drug prices by 30 to 80 percent, I thought I’d home in on a few inconvenient realities.
First, I see no way Trump can unilaterally order any company to lower the price of its product.
That’s why he did more than issue an Executive Order. He’s included the price drop in his Big Beautiful Budget bill, which will go before Congress.
But how can Congress force companies to change their prices?
Congress CAN reduce federal spending for medical drugs, for government programs like Medicare and Medicaid. That would create a standoff:
Pharma companies could say, “Well, if you want Medicare and Medicaid to spend less, we’ll have to sell fewer drugs to them. See how patients like that situation, when the drugs their doctors prescribe aren’t available. When the patients would have to pay for them out of pocket, and can’t afford to.”
At that point, Trump would have to go on the warpath, and mount one of his sizzling PR campaigns—talk directly to the American people, tell them how horrible these drug companies are and try to shame them into lowering their prices across the board. I’ll comment on this “art of the deal” approach in a minute.
There’s another kind of problem. Trump is floating the notion that drug companies are selling their products to Europe for low prices, and is making up that shortfall by gouging America and charging sky-high prices here. And Trump says this is a con and a hustle and unconscionable, and he’s going to stop it. From now on, drug companies will lower their prices in America, and charge more than they are now in Europe. That’ll fix the situation. Actually, drug companies will be happy, because their overall profits will remain the same.
Will Trump’s scheme really work out?
Is Trump right about what these drug companies are doing in Europe vs. what they’re doing in America?
I don’t think so. Here’s why:
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