President may use executive order to reduce price of certain drugs

President Trump has announced a forthcoming executive order designed to lower certain drug costs by pegging them to the lowest of a set of “favoured nations”.

Mr Trump said:

“We’re going to be announcing something very shortly… We’re working on a favoured nations clause, where we pay whatever the lowest nation’s price is… why should other nations, like Canada… pay less than us?”

It is not yet clear to which drugs the executive order would apply, however the “favoured nations” language was used in a price index proposal relating to Medicare Part B in 2018.

MAP continue to monitor the different approaches currently under discussion in the USA. Find out more on this story from the New York Times.

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Published 8. July 2019 in News