President Donald Trump recently announced his next step toward reeling in out of control prescription costs.

The proposed three point pilot program would use administrative action to bring drug prices in line with prices paid in other countries, expand the Medicare Part D practice of allowing private sector vendors to negotiate for lower drug prices and change incentives that encourage doctors to prescribe more expensive drugs.

The proposals in the speech are just a few of many welcome steps the president has taken to bring more transparency and market-based competition to the pharmaceutical market. Allowing private-sector competition in Medicare by letting companies negotiate on behalf of patients, much like pharmacy benefit managers do for insurance companies and companies in the private sector, has the potential to save taxpayers and patients billions of dollars.

Trump's Food and Drug Administration, under Scott Gottlieb, has approved over a thousand low-cost generics, already saving Americans $9 billion. Two bills recently signed in the Oval Office (the Patient Right to Know Drug Prices Act and the Know the Lowest Price Act) ended the “gag rule” that not just discouraged but sometimes legally forbade pharmacists from telling some customers the price of drugs at the pharmacy or presenting them with most cost effective options to fill their prescriptions.

It is clear to see that since his Rose Garden drug pricing announcement in May, the president has already made considerable strides towards stabilizing the skyrocketing cost of prescription drugs. But there is still much work to be done and the president must be mindful of what reforms he focuses his attention on next.

There are many good solutions the president can focus on. A recent proposal that requires drug companies to disclose the list price of prescription medications in television ads would encourage drug manufacturers to keep their prices in check.

The Food and Drug Administration has established a working group on drug importation to address price spikes to prevent “pharma bros” like Martin Shkreli from gouging consumers and limiting access to life-saving medications. Most important though is making sure that the focus remains on addressing true drivers of high drug prices and not undermining the very market forces that help keep prices down.

Extensive and well-funded PR lobbying efforts by big pharma threaten to undermine the whole process. In the case of the president’s latest proposal, big pharma is already forcefully pushing back, arguing that these proposals could limit patient access to drugs – despite lowering prices – and could have a chilling effect when it comes to innovation of new drugs.

More concerning, they are trying to divert attention from the role they play in driving the cost of pharmaceuticals, despite accounting for 88% of the cost of a branded drug. Instead pharmaceutical manufacturers are trying to blame other actors in the process such as pharmacy benefits managers and retail pharmacies for driving costs, despite accounting for merely a small fraction of the total price of a drug.

As President Trump rightly pointed out when he addressed increasing drug prices: “No industry spends more money on lobbying than the pharmaceutical health products industry. Last year these companies spent nearly $280 million on lobbyists.”

If pharmaceutical companies can weaken the bargaining power of the private sector actors that help rein in prices and exempt themselves from blame in the process, the millions spent annually lobbying Congress and the Executive Branch will be money well spent.

President Trump must be mindful that the reforms he focuses on continue to promote free-market competition and address all parts of the supply chain, including the drug manufacturers themselves.

In a recent interview, Senate Majority Leader Mitch McConnell indicated that the Senate may yet make another go at repealing Obamacare, calling the failed attempt to repeal the law a “disappointment.” Almost as disappointing would be if President Trump is prevented from bringing meaningful reform to drug pricing by the same pharma swamp creatures that brought us Obamacare.

A recent Fox News poll found that healthcare is the top issue motivating Americans to vote in this midterm election and it is likely to continue to weigh heavy as we move into the 2020 elections.

Time after time, President Trump has shown that when he makes a policy promise, he keeps it.

Just like with historic tax reform and his efforts to roll back the regulatory state, he must show he is committed to bring down the price of health care and continue to take demonstrable steps to do so.

Rick Amato, is a former financial adviser for Merrill Lynch and founded the Amato Wealth Management Group. He is currently the host of "Politics And Profits with Rick Amato," and co-hosts "Jobenomics America TV." Find out more at amatotalk.com.