May 15, 2025 • 9 mins
This attempt to lower prescription drug prices is different.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The Brian Mudshow podcast is driven by Braymanmotor Cars. My
family is a Brayman Motor Cars family. Your family should
be to visit Braymanmotorcars dot Com.
Speaker 2 (00:13):
Your questions, Brian's answers. It's time for Today's Q and
ALF the day. This is the Brian mud Show.
Speaker 1 (00:21):
Today's Q and A well President Trump's executive order really
lower prescription drug prices.
Speaker 2 (00:27):
This is brought to you by Melissa and Ashes.
Speaker 1 (00:30):
Check my collections each day feature our listener of questions
sent by one of these methods. You may email me
Brian Mud at iHeartMedia dot com, hand me up on
social at Brian Mud Radio. May also use the iHeartRadio
talkback feature. Just go to Wjano or zero Patriot inside
of the iHeartRadio app when you get there. We would
love it if you would love us. We would love
(00:53):
it if you would make us your your number one
pre set and then the Brian Mudshow podcast my podcast
you're number two pre sent that way. We're always there
for you, easy to find, can listen on demand for
free everywhere you go. And while you're in there, you
also see a little microphone button. You see it, you
tap it, you may lay out a message right there,
maybe a topic of question for a future Q and A.
(01:14):
And today's notice this Hi Brian, longtime, first time. I
appreciate the research to put into your work. That's why
I'm reaching out to you today. I would love to
believe that President Trump's EO will really be the change
needed to bring our X prices down, but I'm skeptical.
Politicians always talk about this, but nothing never changes. What's
different this time, if anything, and will it really work?
(01:39):
It's a fair question. It's a good question. First a
word from our president. Pharmaceutical and drug companies have said
that research and development costs were what they are for
no reason whatsoever.
Speaker 2 (01:53):
They had to be born by America alone, no more,
he says.
Speaker 1 (01:59):
Monday's Executive Order entitled Delivering Most Favored Nation Prescription Drug
Pricing to American Patients is the order of President Trump
sign that is aimed at reducing prescription drug prices for Americans.
And actually, the first difference with this policy compared with
previous attempts is even within the name of that order,
there's a foreign policy objective that's in play here as
(02:21):
well as is noted by President Trump in the order.
It says the United States has less than five percent
of the world's population and yet funds around three quarters
of global pharmaceutical profits. This egregious imbalance is orchestrated through
a purposeful scheme in which drug drug manufacturers deeply discount
(02:41):
their products to access foreign markets and subsidize that decrease
through enormously high prices in the United States. Okay, So,
to address that issue and to bring down the cost
of prescription drugs, the President laid out four actionable sections
within the order.
Speaker 2 (02:57):
They are these.
Speaker 1 (02:58):
The first one on policy, It says Americans should not
be forced to subsidize low cost prescription drugs and biologics
in other developed countries and face overcharges for the same
products in the United States. Americans must therefore have access
to the most favored nation price.
Speaker 2 (03:18):
For these products.
Speaker 1 (03:21):
That takes us to the second actionable item, which is
addressing foreign nations free loading on American financed innovation, says
the Secretary of Commerce and the United States Trade Representative
shall take all necessary and appropriate action to ensure foreign
countries are not engaged in any act, policy, or practice
(03:42):
that may be unreasonable or discriminatory, or that may impair
United States national security, and that has the effect of
forcing American patients to pay for a disproportionate amount of
global pharmaceutical research and development, including by suppressing the price
of pharmacetutic products below fair market value in foreign countries.
(04:05):
Important piece the third one enabling direct to consumer sales
to American patients at the most favored nation price. It
says the Secretary of Health and Human Services shall facilitate
direct to consumer purchasing programs for pharmaceutical manufacturers that sell
their products to American patients at the most favored nation price.
(04:28):
And the fourth piece establishing most favor nation pricing on
that it says, within thirty days of the date of
this order, so this is Monday, the Secretary shall communicate
most favor nation price targets to pharmaceutical manufacturers to bring
prices for American patients in line with comparably developed nations.
Speaker 2 (04:49):
Okay, so for starters.
Speaker 1 (04:51):
Nothing in this order has been attempted quite this way
by prior administrations, including Trump, who did try to do
something similar but different in his first term and got
held up in the courts. This attempt to lower prescription
drug prices is different.
Speaker 2 (05:06):
It's a too pronged approach.
Speaker 1 (05:08):
The reason prescription drugs are cheaper in other countries is
due to a series of government price controls, not in
our country but theirs. Under the largely socialized medical establishments
of other countries, the price that they're willing to pay
is dictated to the drug companies or like, we'll only
do this, take it or leave it, and so the
pharmaceutical companies then find themselves in the situation of having
(05:31):
to agree to the terms or being locked out of
doing business in those markets. Drug companies take the deals
which don't enable them to achieve sustainable profit margins for
both profit needs and also too fund ongoing to R
and D making up for those deficiencies in this country,
and that is what Trump is looking to end. So
there is pressure being applied on drug companies and also
(05:53):
the countries that institute price controls but that want access
to these medicines in addition and especially to drug companies
to do businesses Differently, Some picked up on this order
and said, oh, this is an effort of price controls.
That's not what this is at all. The order as
it read, task Health and Human Services just figure out
(06:16):
what the heck the average price is being paid for
other drugs around the world in these most favored nation countries,
and then just allow Americans to buy directly from wherever
at this prices. It doesn't have to be from drug
companies and buy from another country at those prices. Give
American consumers the choice. So that is what we're talking
(06:37):
about here. As for whether this will work, time will tell,
and some of this will come down to legal stuff
yet again, because you know, anybody who has a dog
in the hunt will probably see and try to stop it.
But consider this from industry expert and Trump critic Mark Cuban.
By the way, if you just know Mark Cuban is
Mark Cuban. He happens to be the founder of cost
(06:58):
plus Drugs and is a pre eminent expert in this space.
This is pretty much what he dedicates his life to
these days. On x he posted this about it. He said,
gotta be honest, the President's EO on healthcare and in
particular drug pricing, could save hundreds of billions. Okay.
Speaker 2 (07:18):
He then broke down.
Speaker 1 (07:19):
The ways that it could happen, which largely focused on
removing the middleman cost of ppms or pharmacy benefit managers.
So they're the middlemen in the process that add cost
to what Americans pay for drugs. He even offered up this,
he said, put me in coach, I'm here to help.
And so he's willing to help the Trump administration on this.
(07:40):
And that's coming from someone who is campaigning with Kamala
Harris last fall. So that that gives you an idea
of how much there is to this potentially. And none
of this is going to come easily as foreign countries
will be reelectant to budget and PBMs are going to
fight for their lives. But there's one big X factor
here in all this. Pharmaceutical companies, generally speaking, would love
(08:06):
to see this work. You're thinking, what why if they're
doing well now, why would they want to do something
that Here's the deal. When drug prices are expensive, who
gets blamed, Joel? You get mad at how much your
diabetes stuff costs you at.
Speaker 2 (08:24):
The company that makes the mad.
Speaker 1 (08:26):
That's right, it's the brand facing company of the drug.
Do you even know what the pharmacy benefit manager is
that you're dealing.
Speaker 3 (08:36):
With, Well, I do because I deal with them through
the insurance right.
Speaker 2 (08:43):
Okay, so I do know. Yeah, so you're familiar with them.
Speaker 3 (08:46):
I'm not happy with them, but yeah, okay, oh so you.
Speaker 2 (08:48):
Are, yeah, but you're aware that you're not happy with
But I don't know.
Speaker 3 (08:52):
I didn't realize that they determine the cost of the
mad only the fact that, yeah, you can only get
it this way and you can only you know, that
kind of stuff's annoying.
Speaker 1 (09:00):
Okay, So yeah, when it comes to the pricing stuff,
no one blames the PBMs.
Speaker 2 (09:06):
Here's the deal.
Speaker 1 (09:08):
Drug companies could sell drugs at a lower prices than
they do right now and still make as much as
they do today, maybe even more by.
Speaker 2 (09:16):
Cutting out the middleman.
Speaker 1 (09:19):
I mean that for them is the win win, absolutely
the win win, because that way they're less of the
boogeyman of people and there's not as much frustration in
the process. So that is the added incentive on their
end for this to work. It's another dynamic here that
really has potential more to come.
The Brian Mudshow podcast is driven by Braymanmotor Cars. My
family is a Brayman Motor Cars family. Your family should
be to visit Braymanmotorcars dot Com.
Speaker 2 (00:13):
Your questions, Brian's answers. It's time for Today's Q and
ALF the day. This is the Brian mud Show.
Speaker 1 (00:21):
Today's Q and A well President Trump's executive order really
lower prescription drug prices.
Speaker 2 (00:27):
This is brought to you by Melissa and Ashes.
Speaker 1 (00:30):
Check my collections each day feature our listener of questions
sent by one of these methods. You may email me
Brian Mud at iHeartMedia dot com, hand me up on
social at Brian Mud Radio. May also use the iHeartRadio
talkback feature. Just go to Wjano or zero Patriot inside
of the iHeartRadio app when you get there. We would
love it if you would love us. We would love
(00:53):
it if you would make us your your number one
pre set and then the Brian Mudshow podcast my podcast
you're number two pre sent that way. We're always there
for you, easy to find, can listen on demand for
free everywhere you go. And while you're in there, you
also see a little microphone button. You see it, you
tap it, you may lay out a message right there,
maybe a topic of question for a future Q and A.
(01:14):
And today's notice this Hi Brian, longtime, first time. I
appreciate the research to put into your work. That's why
I'm reaching out to you today. I would love to
believe that President Trump's EO will really be the change
needed to bring our X prices down, but I'm skeptical.
Politicians always talk about this, but nothing never changes. What's
different this time, if anything, and will it really work?
(01:39):
It's a fair question. It's a good question. First a
word from our president. Pharmaceutical and drug companies have said
that research and development costs were what they are for
no reason whatsoever.
Speaker 2 (01:53):
They had to be born by America alone, no more,
he says.
Speaker 1 (01:59):
Monday's Executive Order entitled Delivering Most Favored Nation Prescription Drug
Pricing to American Patients is the order of President Trump
sign that is aimed at reducing prescription drug prices for Americans.
And actually, the first difference with this policy compared with
previous attempts is even within the name of that order,
there's a foreign policy objective that's in play here as
(02:21):
well as is noted by President Trump in the order.
It says the United States has less than five percent
of the world's population and yet funds around three quarters
of global pharmaceutical profits. This egregious imbalance is orchestrated through
a purposeful scheme in which drug drug manufacturers deeply discount
(02:41):
their products to access foreign markets and subsidize that decrease
through enormously high prices in the United States. Okay, So,
to address that issue and to bring down the cost
of prescription drugs, the President laid out four actionable sections
within the order.
Speaker 2 (02:57):
They are these.
Speaker 1 (02:58):
The first one on policy, It says Americans should not
be forced to subsidize low cost prescription drugs and biologics
in other developed countries and face overcharges for the same
products in the United States. Americans must therefore have access
to the most favored nation price.
Speaker 2 (03:18):
For these products.
Speaker 1 (03:21):
That takes us to the second actionable item, which is
addressing foreign nations free loading on American financed innovation, says
the Secretary of Commerce and the United States Trade Representative
shall take all necessary and appropriate action to ensure foreign
countries are not engaged in any act, policy, or practice
(03:42):
that may be unreasonable or discriminatory, or that may impair
United States national security, and that has the effect of
forcing American patients to pay for a disproportionate amount of
global pharmaceutical research and development, including by suppressing the price
of pharmacetutic products below fair market value in foreign countries.
(04:05):
Important piece the third one enabling direct to consumer sales
to American patients at the most favored nation price. It
says the Secretary of Health and Human Services shall facilitate
direct to consumer purchasing programs for pharmaceutical manufacturers that sell
their products to American patients at the most favored nation price.
(04:28):
And the fourth piece establishing most favor nation pricing on
that it says, within thirty days of the date of
this order, so this is Monday, the Secretary shall communicate
most favor nation price targets to pharmaceutical manufacturers to bring
prices for American patients in line with comparably developed nations.
Speaker 2 (04:49):
Okay, so for starters.
Speaker 1 (04:51):
Nothing in this order has been attempted quite this way
by prior administrations, including Trump, who did try to do
something similar but different in his first term and got
held up in the courts. This attempt to lower prescription
drug prices is different.
Speaker 2 (05:06):
It's a too pronged approach.
Speaker 1 (05:08):
The reason prescription drugs are cheaper in other countries is
due to a series of government price controls, not in
our country but theirs. Under the largely socialized medical establishments
of other countries, the price that they're willing to pay
is dictated to the drug companies or like, we'll only
do this, take it or leave it, and so the
pharmaceutical companies then find themselves in the situation of having
(05:31):
to agree to the terms or being locked out of
doing business in those markets. Drug companies take the deals
which don't enable them to achieve sustainable profit margins for
both profit needs and also too fund ongoing to R
and D making up for those deficiencies in this country,
and that is what Trump is looking to end. So
there is pressure being applied on drug companies and also
(05:53):
the countries that institute price controls but that want access
to these medicines in addition and especially to drug companies
to do businesses Differently, Some picked up on this order
and said, oh, this is an effort of price controls.
That's not what this is at all. The order as
it read, task Health and Human Services just figure out
(06:16):
what the heck the average price is being paid for
other drugs around the world in these most favored nation countries,
and then just allow Americans to buy directly from wherever
at this prices. It doesn't have to be from drug
companies and buy from another country at those prices. Give
American consumers the choice. So that is what we're talking
(06:37):
about here. As for whether this will work, time will tell,
and some of this will come down to legal stuff
yet again, because you know, anybody who has a dog
in the hunt will probably see and try to stop it.
But consider this from industry expert and Trump critic Mark Cuban.
By the way, if you just know Mark Cuban is
Mark Cuban. He happens to be the founder of cost
(06:58):
plus Drugs and is a pre eminent expert in this space.
This is pretty much what he dedicates his life to
these days. On x he posted this about it. He said,
gotta be honest, the President's EO on healthcare and in
particular drug pricing, could save hundreds of billions. Okay.
Speaker 2 (07:18):
He then broke down.
Speaker 1 (07:19):
The ways that it could happen, which largely focused on
removing the middleman cost of ppms or pharmacy benefit managers.
So they're the middlemen in the process that add cost
to what Americans pay for drugs. He even offered up this,
he said, put me in coach, I'm here to help.
And so he's willing to help the Trump administration on this.
(07:40):
And that's coming from someone who is campaigning with Kamala
Harris last fall. So that that gives you an idea
of how much there is to this potentially. And none
of this is going to come easily as foreign countries
will be reelectant to budget and PBMs are going to
fight for their lives. But there's one big X factor
here in all this. Pharmaceutical companies, generally speaking, would love
(08:06):
to see this work. You're thinking, what why if they're
doing well now, why would they want to do something
that Here's the deal. When drug prices are expensive, who
gets blamed, Joel? You get mad at how much your
diabetes stuff costs you at.
Speaker 2 (08:24):
The company that makes the mad.
Speaker 1 (08:26):
That's right, it's the brand facing company of the drug.
Do you even know what the pharmacy benefit manager is
that you're dealing.
Speaker 3 (08:36):
With, Well, I do because I deal with them through
the insurance right.
Speaker 2 (08:43):
Okay, so I do know. Yeah, so you're familiar with them.
Speaker 3 (08:46):
I'm not happy with them, but yeah, okay, oh so you.
Speaker 2 (08:48):
Are, yeah, but you're aware that you're not happy with
But I don't know.
Speaker 3 (08:52):
I didn't realize that they determine the cost of the
mad only the fact that, yeah, you can only get
it this way and you can only you know, that
kind of stuff's annoying.
Speaker 1 (09:00):
Okay, So yeah, when it comes to the pricing stuff,
no one blames the PBMs.
Speaker 2 (09:06):
Here's the deal.
Speaker 1 (09:08):
Drug companies could sell drugs at a lower prices than
they do right now and still make as much as
they do today, maybe even more by.
Speaker 2 (09:16):
Cutting out the middleman.
Speaker 1 (09:19):
I mean that for them is the win win, absolutely
the win win, because that way they're less of the
boogeyman of people and there's not as much frustration in
the process. So that is the added incentive on their
end for this to work. It's another dynamic here that
really has potential more to come.
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