President Trump on Friday revealed his long-promised plan to lower prescription drug prices. "The drug lobby is making an absolute fortune at the expense of American consumers," he said. "We are putting American patients first."
The proposal does not allow Medicare to negotiate for better deals, as Trump suggested on the campaign trail, but it does give the program more flexibility to respond as prices change. The Department of Health and Human Services says Trump's plan will operate in four areas: "increasing competition," "better negotiation," "creating incentives to lower list prices," and "reducing patient out-of-pocket spending."
The plan, which remains vague but has already drawn criticism from Democrats and the pharmaceutical industry, is implemented via executive order, meaning the next administration can easily undo it.