US pricing plan slammed for imposing “foreign price controls” | PMLiVE

President Trump’s latest plan to bring down the cost of medicines in the US has drawn fire from the drug industry, which claims it will undermine access to medicines for some of the country’s neediest people.

Last week, Trump unveiled proposals to bring US prices for drugs covered by Medicare Part B – which covers medicines given in doctor’s offices or outpatient clinics – into line with other industrialised countries. Analysts suggest the companies most affected by this would be Regeneron, Amgen, Roche, Johnson & Johnson and Bristol-Myers Squibb, as they have the largest exposure to Medicare Part B.

The aim is to stop high prices in the US subsidising the pharma industry as it negotiates lower prices with other governments, a situation which the President describes as “global freeloading.” A Health and Human Services (HHS) department analysis suggests the US currently pays around 80% more for medicines than a reference set of 16 other affluent countries.

Under the proposals, reimbursement for drugs covered by Medicare Part B would gradually be cut back until the US price was 26% more than a reference price drawn from other nations, saving an estimated $17bn, with out-of-pocket savings potentially totaling $3.4bn.

Meanwhile, prescribers will be paid a flat reimbursement rate for medicines, regardless of the cost, removing what the HHS says is a “perverse incentive” to prescribe costlier drugs.

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US pricing plan slammed for imposing “foreign price controls” – PMLiVE.