On Monday, President Trump plans to sign an executive order intending to reduce various US drug prices by aligning them with the rates paid by other affluent nations. True Social reported on Sunday evening.
The proposal, referred to as the “most favored nation” pricing model, cannot alter federal policies. Trump did not specify which insurances or drugs would be included, but asserted that the US should secure the lowest price among comparable countries.
“Our nation will be treated fairly, and citizens’ healthcare costs will drop to unprecedented levels,” he stated in a social media update.
This initiative may face legal challenges, and it remains uncertain if it can proceed without legislative action.
During his first term, Trump attempted to implement a version of this Medicare concept. It would have affected 68 million Americans aged 65 and older or those with disabilities. The proposal would have targeted only 50 drugs given in clinics and hospitals reimbursed by Medicare, but a federal court blocked it, citing procedural oversights by the administration.
The pharmaceutical sector staunchly opposes this notion, fearing significant cuts to their profits. They have been actively lobbying against it as policy discussions have intensified in Washington in recent weeks. Companies caution that such measures could lead to reduced research funding and limit patient access to new medications.
“Government pricing in any form is detrimental to patients in America,” stated Alex Schriver, an employee of a prominent pharmaceutical lobbying group. He added, “Policymakers should concentrate on addressing flaws in the US system rather than adopting unsuccessful policies from abroad.”
Trump’s openness to these ideas distinguishes him from the majority of Republicans, who are generally skeptical of government pricing. Democrats are also proposing a version of the concept.
Amiet Salpatwali, a pharmaceutical policy expert at Harvard Medical School, noted that Trump is capitalizing on ideas that carry “populist appeal.”
Trump has long complained that the US pays much higher prices for the same drugs compared to other affluent countries. His claim holds merit: in the US, branded drug prices are on average three times higher than those in peer nations.
This disparity occurs even though a significant portion of the research that leads to new drugs is performed in American laboratories and hospitals.
Pharmaceutical firms generate a considerable majority of their global profits from US sales, often tailoring business strategies to the US market.
The industry asserts that higher prices in the US have certain advantages. According to industry-funded analyses, patients in the US access medications more rapidly and face fewer insurance restrictions compared to other nations.
Source: www.nytimes.com
