President Trump signed an executive order yesterday to ensure US patients pay the same prices as those in other countries. It is not a secret that patients in the US pay many times more than patients in other countries for the exact same medicines. In some cases, as many as several hundred times more. There are many reasons for this, one of which is that some nations negotiate directly with the drug manufacturers. Another, is that drug manufacturers expect the American market to cover the difference.

President Trump’s executive order requires that Medicare patients pay no more than the most-favored-nation price, the lowest price paid in other developed nations. While this could prove to make a significant difference in actual out of pocket expenses, it also could be meaningless. Time and again we have seen big pharma create and exploit loopholes meant to save money for Americans.

On July 24, President Trump signed several executive orders meant to lower drug prices. This order was deferred in the hopes that the administration and the pharmaceutical industry could come to an agreement. Without an agreement, we can expect the drug manufacturers to fight this order.