Pharmaceutical Drug Pricing and President Trump's Most-Favored-Nation Executive Order

SOURCE www.breitbart.com
The article discusses how the U.S. has been overpaying for pharmaceuticals due to lack of negotiation, leading to high drug prices compared to other countries. President Trump's Most-Favored-Nation Executive Order aims to peg drug prices paid by Medicare and Medicaid to the lowest amount paid by comparable foreign countries to stop the 'free ride' enjoyed by other nations.

Key Points

  • The U.S. has been paying significantly higher prices for pharmaceuticals compared to other developed countries due to lack of negotiation.
  • President Trump's Most-Favored-Nation Executive Order aims to address this imbalance by pegging drug prices to those paid by other nations.
  • The order is seen as a move towards fairer pricing and reducing the burden on American consumers.

Pros

  • The Most-Favored-Nation Executive Order aims to lower drug prices for American consumers by pegging them to prices paid by other countries.
  • The order could lead to significant cost savings for American patients and taxpayers.
  • It may incentivize genuine breakthroughs in pharmaceutical innovation by rewarding them appropriately.

Cons

  • Critics warn that the order could lead to a decline in new drug development by 5 to 10 percent over the next two decades.
  • Industry backlash and threats of reduced investment are expected in response to the order.