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A Surgical Approach To High Prescription Drug Prices | Forbes

President Trump’s plan to lower prescription drug costs uses a surgeon’s scalpel to address a range of issues, offering nearly 30 policy recommendations to modernize payment policies, weed out counter-productive regulations, improve price transparency, and expand competitive price negotiations.

The plan reflects the complexity of the industry and the regulatory system that governs government approval and payment for prescription drugs. While it has some barbs, the blueprint respects the need to provide incentives for companies to continue to invest in research, to protect intellectual property rights, and provide the greater transparency and lower costs consumers are demanding.

White House health policy advisor Katy Talento previewed the president’s speech about the plan during a presentation to the Independent Women’s Forum WomenLEAD Summit, forecasting major announcements “about an issue that the president feels very strongly about.”

Two days later, President Trump unveiled the program in a Rose Garden speech and released a 39-page white paper about an industry that provides patients with “the greatest medicines in the world” while acknowledging that high prices and high out-of-pocket costs are impeding access.

The HHS white paper, “American Patients First,” is a comprehensive analysis of the problems driving the drug pricing and costs problem, including other countries’ price controls that mean they free-ride off of U.S. investments in research, and the mind-bogglingly complex web of payment policies, rebates, discounts, and fees that the U.S. imposes, artificially boosting prices.

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A Surgical Approach To High Prescription Drug Prices.