Yesterday, 5/12/25, President Trump signed an executive order(EO) limiting what Big Pharma can charge for its drugs in the U.S. Although this sounds straightforward, it is not for a couple of reasons.
First off this EO can only apply to those individuals whose drugs are covered under Medicare or Medicaid, as these are the groups in which the government is involved with the drug payments. This EO cannot apply to the private sector.
Big Pharma is not going to like this! Back in Trump’s first term he tried something similar and was sued by Big Pharma. Basically, back then Big Pharma won out, because the courts basically said that only Congress could do this by passing legislation.
So now expect Big Pharma to again file suit, and this EO will be put on hold. It is very likely that the same thing will happen again … the courts will conclude (rightfully so) that only Congress can do this by legislation. Trump is no dummy and he knows what’s in store here. However, with Congress now being controlled by the Republicans, some sort of bill will surface involving the same basic concept as this present EO, and for sure this be come up well before the midterm elections. When this occurs, there will be intense pressure on the Democrats in Congress to vote for its passage. I cannot envision a member of Congress voting against this if he/she is running in 2026.
Donald Trump has laid the trap on what could actually turn out to be his legacy achievement!
5/13/25
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Political commentary from a conservative Californian