Context:

President Donald Trump is taking steps to address the high cost of drugs in the United States by targeting the practices of foreign countries that keep drug prices low abroad. An executive order is set to be signed, which will affect a broad range of medications across commercial markets and government programs like Medicare and Medicaid. The White House aims to negotiate lower prices through the Department of Health and Human Services, and if unsuccessful, will enforce a 'Most Favored Nation' rule to ensure the lowest international prices are applied. This initiative is expected to lead to significant legal challenges as it seeks to overhaul the current pricing structure. Further developments are anticipated as the story unfolds, with updates to follow in response to the evolving situation.

Dive Deeper:

• The executive order aims to tackle 'unreasonable practices' by foreign nations that result in suppressed drug prices, thereby influencing higher costs in the US market. This strategy is intended to bring down the cost of a wide array of drugs across different sectors.

• It covers medications in the commercial market as well as those provided through Medicare and Medicaid, which could lead to widespread changes in how drug prices are negotiated and set in the United States.

• The administration plans to use various policy tools to push drug prices down if the initial efforts do not lead to swift results, indicating a proactive approach to implementing the executive order.

• A significant aspect of the mandate involves the Department of Health and Human Services negotiating lower prices. In the absence of progress, a 'Most Favored Nation' pricing rule will be applied to ensure drugs are sold at the lowest price available among similar countries.

• The proposed changes are likely to provoke intense legal disputes, as stakeholders in the pharmaceutical industry may challenge the new regulations aimed at reducing drug costs.

• The initiative reflects a broader strategy by the Trump administration to address healthcare costs, specifically targeting the disparity in drug pricing between the US and other nations.

• As this is a developing story, further updates and details are expected as the situation evolves and the executive order's impact becomes clearer.