It will also create a report for the president evaluating whether lower prices on some Medicare Part B drugs could be negotiated by Part D plans.
Fox News Radio's Guy Benson spoke to Senator Bill Cassidy (R-LA) earlier who says Trump "laid out a way to take power away from special interests-protecting innovation, but not protecting drug monopolies". "We're having FDA look at how to require in direct-to-consumer [drug] ads that you have to disclose the list price of your drug".
Trump has been promising since he took office that he would take on drug makers and make medications more affordable for patients.
President Donald Trump took to the Rose Garden Friday, unveiling the "American Patients First" blueprint that senior administration officials touted as "the most comprehensive plan to tackle prescription drug affordability".
"Requiring drug rebates to be passed through to Medicare patients at the pharmacy counter would likely lead to higher drug prices from manufacturers, and would to higher premiums for seniors", AHIP said in a response to the Trump administration proposals.
Almost three-quarters of registered voters said in a recent nationwide poll that they would be more likely to support a congressional candidate this fall who supports bringing down the cost of prescription medications.
Healthcare groups had mixed reactions to the administration's proposals.More news: Trump heralds capture of five Islamic State commanders
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Trump also blasted the pharmaceutical and insurance industries for spending hundreds of millions of dollars on lobbying to protect the status quo. Patients in the USA pay as much as six times more for drugs than patients in other countries, according to the International Federation of Health Plans.
Familiar in its themes and rhetoric, the speech touched on everything from privatization to patent laws, while spotlighting plans to kill "gag rules" affecting pharmacists and to "demand fairness overseas" where Trump said foreign governments "extort unreasonably low prices from USA drugmakers", putting the onus of subsidizing R&D costs squarely on Americans. PBMs, which process drug claims and negotiate drug discounts with pharmaceutical companies, are paid, in part, on the spread between the list price and rebates, which gives them incentive to raise list prices, critics argue.
But This Might Be About Politics More Than Results: "The president's tough talk on drug prices will no doubt be popular with the public".
Sanders also said he wants to see a plan that allows drug distributors and pharmacists to buy FDA-approved drugs from other countries where they are cheaper.
Indeed, despite Trump's consistent rhetoric about pharmaceutical companies "getting away with murder", the administration hasn't taken action on drugmakers, which have so far largely benefited from his administration.
But it disagrees with the rebate policy.
The drug industry's top lobbying arm, Pharmaceutical Research and Manufacturers of America, spent almost $26 million to sway federal decision makers previous year, according to records tallied by Center for Responsive Politics.
Allowing Medicare to negotiate prices is unacceptable to the powerful drug lobby, which has spent tens of millions of dollars since Trump's inauguration to influence the Washington conversation around drug prices, including a high-profile TV advertising campaign portraying its scientists as medical trailblazers.