Trump issues executive directive aimed at lowering cost of medication prescriptions
Rewritten Article:
Hey there! Here's a lowdown on the latest move by the Trump administration to combat the exorbitant prices of prescription drugs in the U.S.
Host LEILA FADEL introduces us to the topic, explaining that the executive order, signed by the president, aims to bring U.S. drug prices in line with those paid by high-income countries. But, as NPR's pharma correspondent Sydney Lupkin points out, there's a conflicting aspect to this order - a tension, if you will.
Americans typically pay more for name-brand prescriptions than folks in other countries. This is something that folks, no matter their political leanings, don't appreciate. So, the administration wants to cut costs by tying U.S. drug prices to those paid elsewhere. That approach is called most favored nation pricing. Here's President Trump explaining the idea.
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PRESIDENT DONALD TRUMP: Essentially, who's paying the lowest price, we'll look at that price, and that'll be the price we'll pay.
But Trump also wants other countries to pay more for their drugs, so Americans aren't shelling out for the global drug development of other nations. Most countries pay less than the U.S. because they have government health systems that regulate drug prices. The U.S. doesn't typically set prices, which means drug companies can test the waters for what the market will bear.
Juliette Cubanski, a Medicare drug pricing expert at the nonpartisan research group KFF, reveals that there are still many unanswered questions regarding the implementation of the executive order.
CUBANSKI: We're yet to get answers to the essential questions required to understand the real impact of the proposed actions in this executive order.
The order tasks the U.S. Trade Representative and Department of Commerce to tackle unfair and discriminatory policies that lower drug prices abroad. It also instructs the administration to establish most favored nation price targets and share them with drug companies within 30 days. The Department of Health and Human Services will facilitate direct sales between consumers and manufacturers at MFN prices, bypassing insurance.
Juliette Cubanski reiterates that while this idea might appeal to many, the devil is in the details.
CUBANSKI: The success of this MFN pricing policy hinges on its execution.
The pharmaceutical industry trade group, PhRMA, voiced concerns, suggesting that Americans shouldn't bear the burden of global innovation costs. To lower costs, they argue that other countries should pay their fair share through trade negotiations.
That's it, folks! This is just the tip of the iceberg - you can expect more news as the administration moves forward with implementing this executive order.
- The Trump administration's executive order, signed by the President, aims to lower the high drug prices in the U.S. by tying them to prices paid in high-income countries, a policy known as most favored nation pricing.
- Americans usually pay more for name-brand prescriptions than people in other countries, a fact that is not well-received by individuals across the political spectrum.
- Most countries have government health systems that regulate drug prices, unlike the U.S., where drug companies often test the market to find out what prices consumers are willing to pay.
- medicare drug pricing expert, Juliette Cubanski, highlighted that while the most favored nation pricing policy might be attractive to many, its success is dependent on its execution.
