Why President Trump’s Pharma Price Cap EO Was Never Released: A Deep Dive

President Donald Trump promised during his campaign that he would release an executive order (EO) to cap the price of prescription drugs in the United States to match the prices paid by other developed nations such as Europe. Yet, despite this being a central component of his campaign rhetoric, the executive order has never been released. This article explores the reasons behind this non-release and the implications for drug pricing policy in the United States.

Understanding Executive Orders (EOs)

Executive Orders (EOs) are directives issued by the President of the United States designed to manage the operations of the federal government, including setting policy guidelines and delegating tasks to federal agencies. However, it is important to note that EOs do not have the same legal weight as laws enacted by Congress. An EO is essentially a statement of the President's intent or a declaration of a policy, but it does not have the force of law. The effectiveness of an EO depends on its implementation, which typically involves administrative actions and coordination with relevant agencies.

The Constitutional Limitations

The reason President Trump’s proposed EO was never released is based on constitutional limitations. The President's authority to issue EOs is primarily derived from the Supreme Commander Clause in the Constitution, which states that the President is "Commander in Chief" of the armed forces. This authority does not extend to managing the domestic economy or altering statutes without Congressional approval. Prescription drug pricing is not under the President's direct control, and yet, the EO in question attempted to intervene in this area. This is a significant limitation on the President's executive authority, given the complex interplay of federal, state, and private sector entities involved in the drug pricing industry.

The Role of Pharmaceutical Companies

Another key reason why the EO was never released is the influence of the pharmaceutical industry. Pharmaceutical companies, like large corporations with significant financial stakes, often wield considerable power and influence over political decisions. President Trump, despite his campaign promises, lacked the political will to challenge these powerful entities directly. The EO would have required companies to reduce the prices of their drugs, and such action would have been met with strong resistance from pharmaceutical firms. With campaigns of lobbying, financial contributions, and strategic partnerships, the industry is a formidable force in shaping public policy.

The Ethereal Nature of the EO

Constitutional scholars and political analysts argue that EOs are often symbolic and do not carry the weight of legislative action. The EO in question appears to be more of a political gesture than a policy intervention. Instead of issuing an EO, a more effective approach would be to seek legislative action through Congress. This would involve a more thorough and transparent process, including bipartisan negotiations and public engagement. The difficulty of this legislative route may have justified Trump's decision not to pursue an EO in this case. Legislative action would require the President to work in collaboration with Congress and might be more challenging politically, but it could achieve more substantial and lasting outcomes.

Conclusion and Implications

President Trump’s failed attempt to release an executive order to cap drug prices highlights the limitations of executive authority and the complex nature of healthcare policy in the United States. The EO would have promised a significant change in drug pricing, but it faced insurmountable legal and political hurdles. This episode serves as a reminder that even with presidential power, achieving meaningful and lasting policy changes requires the cooperation of Congress and the backing of the public. Drug pricing reform in the United States is likely to continue to be a contentious and evolving issue, with ongoing debates and negotiations.