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Trump’s free market approach to drug pricing will help lower costs | TheHill

During President Trump’s State of the Union speech, he spoke about the urgent need to lower prescription drug prices. He talked about global freeloading and the injustice of Americans paying more for drugs that are made here than foreign countries do. He discussed the need for price transparency, where drug manufacturers reveal their list prices on television ads and elsewhere. The president also discussed the need for legislation that ensures drug discounts are transferred directly to the consumer.

Under the current system, middle managers, like pharmacy benefit managers and insurers negotiate prices with the drug companies.

What should we do?

I am not one who favors big government solutions such as Medicare for All, which could negotiate drug prices across the board. This approach might lower prices, but would likely stifle innovation and decrease accessible options for my patients at a time of great advances in cancer immunotherapy treatments, surgical and radiological techniques.

Instead, I agree with the Trump administration’s free market approach. The FDA under Commissioner Scott Gottlieb has been approving more generic and biosimilar drugs at an unprecedented rate.

Dr. Gottlieb told me in a recent interview that he expects there to be an exorbitant rise in insulin prices because of more biosimilar drugs developing within the next few years. These new drugs will increase competition and lead to lower more affordable prices.

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Trump’s free market approach to drug pricing will help lower costs | TheHill.