US EditionBrown: Foreign trade may pay better
- President Donald Trump recently urged House Republicans to adopt a 'most favored nation' policy to lower Medicaid drug prices by benchmarking costs to lower foreign rates.
- This proposal was prompted by rising concerns about soaring U.S. Health-care entitlement expenditures and the fact that drug prices in the United States are significantly greater—ranging between roughly two and three-and-a-half times—than those found in EU and OECD countries.
- Experts note that foreign price controls cause American consumers to bear disproportionate pharmaceutical costs and that MFN could reduce drug manufacturers’ revenues and incentives for new drug research.
- The Congressional Budget Office cautioned that methods reducing manufacturers' anticipated earnings or increasing their investment expenses could diminish their motivation to invest in research and development, ultimately slowing the rate of pharmaceutical innovation.
- Adopting MFN risks replicating foreign market distortions, undermining innovation, and causing drug shortages, suggesting trade-based strategies may better address cost issues without harming U.S. Patients or innovation.
11 Articles
11 Articles
Brown: Foreign trade may pay better
One of President Donald Trump’s main talking points has been increasing American manufacturing by increasing tariffs and reducing regulations. On Tuesday, he signed an executive order the White House contends will result in increased U.S. manufacturing of prescription drugs. “As we invest in the future, we will permanently bring our medical supply chains back home,” Trump said. Read more...
Lame Duck Watch: Congressional Leaders Snub Trump on Drug Prices
As early as Monday, according to Politico, President Donald Trump is expected to issue an executive order that will look like smart politics on its face, but it’s really a sign of the president’s political weakness. Trump “plans to revive an effort to dramatically slash drug costs by tying the amount the government pays for some medicines to lower prices abroad, three people familiar with the matter told POLITICO. Early next week, Trump is expe…
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