Trump Set To Implement Sweeping Medicare Drug Price Proposal: Report
President Donald Trump is poised to revive a bold initiative aimed at slashing prescription drug costs by tying what Medicare pays for certain medications to the lower prices negotiated in other countries, according to sources cited by Politico.
The proposed action, described as a “most favored nation” policy, would use the power of executive authority to demand fairer prices for American patients—finally ending the practice of U.S. taxpayers subsidizing cheap drugs for the rest of the world.
According to three individuals with knowledge of the plan, President Trump is expected to sign an executive order early next week that would direct his administration to pursue the policy for a select group of Medicare-covered drugs. While the details are still being finalized, insiders suggest the order could reignite a policy battle that has long pitted the Trump administration against Big Pharma.
Trump himself hinted at the move in remarks delivered from the Oval Office Tuesday during a meeting with Canadian Prime Minister Mark Carney.
“We’re going to have a very, very big announcement to make—like as big as it gets,” the president said. “It will be one of the most important announcements that have been made in many years about a certain subject.”
One source familiar with the matter confirmed to Politico that Trump was referring to the long-awaited drug pricing initiative. The two other sources could not confirm but said the announcement is expected imminently.
The "most favored nation" pricing model was first introduced by President Trump in 2018 and revisited during the closing months of his first term. However, it was blocked by a federal judge on procedural grounds—only to be scrapped entirely by the Biden administration, which caved to pharmaceutical interests and reversed course.
Now back in office with a clear mandate from voters, President Trump appears ready to finish the job.
White House Press Secretary Karoline Leavitt, asked about the plan on Wednesday, remained tight-lipped. “The President will make a big and historic announcement on Monday. Until then, everyone can keep guessing!” she said.
Behind the scenes, Trump has reportedly been pressing his senior aides for fresh strategies to lower drug prices in a way that is immediate and impactful. The White House had initially pushed Congress to include a “most favored nation” provision in the GOP’s broader healthcare package—but resistance from within the Republican conference has made legislative action unlikely.
Instead, the administration is prepared to act decisively on its own authority.
“The White House is now expected to try to advance the drug price proposal on its own, using existing authorities to impose its ‘most favored nation’ model,” Politico reported. The move will undoubtedly spark fierce opposition from pharmaceutical lobbyists, who argue the policy could limit innovation—but for millions of Americans, the price of inaction is far greater.
One insider noted that the new executive order will resemble Trump’s original proposal, though this time around, it may offer fewer details on which drugs will be directly targeted. The goal: maximum flexibility and rapid implementation.
Meanwhile, President Trump is continuing to reshape the federal judiciary. On Tuesday, he nominated Maria Lanahan, Missouri’s Principal Deputy Solicitor General, to the U.S. District Court for the Eastern District of Missouri, calling her “a true patriot” in a post on Truth Social.
In another announcement, Trump described Judge Cristian Stevens of the Missouri Court of Appeals as “a great patriot” as well.
But the president also expressed frustration over judicial hurdles that have blocked parts of his America First agenda.
In a Wednesday post, Trump lamented that activist judges are obstructing his ability to execute the duties entrusted to him by the American people.
As he prepares to announce sweeping reforms to bring fairness back to the U.S. healthcare system, President Trump is once again proving he’s not afraid to take on entrenched special interests—even if it means fighting the battle alone.