Trump’s Latest Plan to Slash Drug Prices Has Real Teeth
The administration’s proposal is unprecedented and could have a significant impact.
Pharma is going to hate this one.
Photographer: Andrew Harrer/Bloomberg
Up to now, most of President Donald Trump’s drug-pricing proposals have been more flash than substance. But that’s about to change.
Trump is set to detail a major pricing initiative in a speech Thursday afternoon in Washington, and early details suggest that this one has real teeth. Politico reports that the administration plans to benchmark Medicare prices for certain drugs against (much lower) prices in 16 other nations, and drop prices to their level over five years. The administration is specifically targeting expensive biologic drugs — medicines made by living cells — that are paid for by Medicare Part B, which covers drugs administered in doctors offices and hospitals.