Pharmacists and pharmacy leaders in Alabama say it’s too early to know whether a new executive order signed by President Donald Trump will ultimately lower out-of-pocket drug costs for patients. The order, issued May 12, gives drug manufacturers 30 days to reduce prices for American consumers, using international rates as a benchmark.
The executive action, titled “Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients,” seeks to address longstanding disparities between drug prices in the United States and those in other developed countries. It argues that because the U.S. is the largest purchaser of pharmaceuticals, Americans should receive the most competitive pricing available.
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According to CBS 42, local pharmacists acknowledged significant differences in costs for the same medications between the U.S. and countries like Australia, where some life-saving treatments cost a fraction of what Americans pay.
Despite the intent of the executive order, Alabama Pharmacy Association Governmental Affairs Director Bobby Giles noted that local pharmacies typically do not buy medications directly from manufacturers. Instead, they purchase through wholesalers and must operate within pricing systems established by pharmacy benefit managers (PBMs), which often determine the final cost seen by patients.
Industry experts say that unless these intermediaries are also held to new pricing standards, lower manufacturer costs may not reach the consumer level. Some pharmacists worry that the current structure of the drug supply chain could limit the impact of any pricing reforms introduced solely at the manufacturing level.
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Another key concern raised involves the scope of the order. The directive currently applies only to Medicare Part B, which covers drugs administered in clinical settings such as chemotherapy or emergency care. It does not include Medicare Part D, which covers many prescriptions filled at local pharmacies. Pharmacists hope that future policy changes will address Part D coverage to have a more direct impact on their operations and patients.
While the Alabama Pharmacy Association and local pharmacy owners welcomed the administration’s attempt to address rising prescription costs, they emphasized that the real-world impact remains unclear. Questions persist about how the order will be implemented, how insurance companies will respond, and whether any savings will ultimately be passed on to patients.
Pharmacy professionals across the state say they are waiting to see how the initiative unfolds, but are encouraged that efforts are being made to tackle an issue that has long affected American healthcare affordability.
Sherri Blevins is a writer for Mountain Valley News and a staff writer for Yellowhammer News. You may contact her at [email protected].