President Trump signed four executive orders on Friday aimed at lowering prescription drug prices, including one mandating “most favored nation pricing for drugs that Medicare Part B pays for”:
@realDonaldTrump is announcing today four executive orders on drug pricing. The most significant of these introduces “most favored nation” pricing for drugs that Medicare Part B pays for. The policy impact will be meaningfully lower costs for seniors and for taxpayers.
— Avik Roy (@Avik) July 24, 2020
Meaning, the U.S. will no longer pay more for the same drugs that wealthy European nations are getting at a discount:
Pres says he is ordering Medicare to buy Rx drugs at the prices other countries pay. Says it will “end global freeloading” on the backs of American seniors.
— Mark Knoller (@markknoller) July 24, 2020
The other three orders summarized here:
The other three executive orders involve: (1) reviving a rule to reform PBM rebates in Medicare Part D; (2) enabling the importation of insulin and other drugs from other countries; (3) reforming the 340B rule to reduce prices paid by low income patients at FQHC clinics.
— Avik Roy (@Avik) July 24, 2020
The drug industry isn’t happy about it:
As usual, the drug industry has been furiously lobbying to prevent the President from taking these actions, but @realDonaldTrump is going ahead. Much credit to @MarkMeadows for helping Trump get this done.
— Avik Roy (@Avik) July 24, 2020
Nor are Dems who don’t think the president is going far enough:
.@SpeakerPelosi quick to decry Trump Executive Orders saying he “pulled his punch” on reducing Rx drug prices. In written statement, she says the Orders would “hand billions of dollars to Big Pharma.” Urges Trump to back Democrats’ legislation to lower Rx prices.
— Mark Knoller (@markknoller) July 24, 2020
The drug industry has a month to come up with an alternative:
Announcing EOs on drug pricing, Trump says drug industry basically has a month to offer an alternative to the policy tying drug prices to costs in foreign countries. Says he’ll meet Tuesday w/ drug company execs
— Mary Ellen McIntire (@MelMcIntire) July 24, 2020
Watch:
President @realDonaldTrump is taking historic action to reduce the price of prescription drugs! pic.twitter.com/k2u3wjfX57
— The White House (@WhiteHouse) July 24, 2020
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