US working on favored-nation clause to source drugs; judge shoots down ‘drug price in ads’ plan

By PharmaCompass

2019-07-11

Impressions: 68 Article

The President of United States Donald Trump has made bringing down prices of drugs a policy priority. In his latest move, Trump said his administration is devising a system to allow the US to buy drugs based on the lowest prices paid by other countries.

“We’re working on right now a favored-nations clause,where we pay whatever the lowest nation’s price is,” Trump said last week.

Trump said an “executive order” was in the works. “Why should other nations like Canada — why should other nations pay much less than us? They’ve taken advantage of the system for a long time…”

Earlier, the Department of Health and Human Services had said that setting rates based on international prices would save the US government US$ 17.2 billion over five years.

Last year, Trump had talked of a proposal that would allow Medicare to set prices for drugs based on cheaper prices paid by other countries. Known as the International Pricing Index, those regulations are under review by the federal government.

The program Trump proposed in October 2018 would apply to drugs in Part B, the segment of Medicare that covers drugs given by a physician in a hospital or clinic.

Meanwhile, a federal judge shot down Trump administration’s rule that forces drug companies to include the price of their medicines in advertisements. The judge said the administration is overstepping its authority with this rule.

Merck , Eli Lilly, Amgen and a trade group for advertisers had sued the US government last month to block the regulation, which would have required drug firms to include list prices of drugs in the ads.

“We are disappointed in the court’s decision and will be working with the Department of Justice on next steps,” Caitlin Oakley, a Department of Health and Human Services spokesperson, said.

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“ The article is based on the information available in public and which the author believes to be true. The author is not disseminating any information, which the author believes or knows, is confidential or in conflict with the privacy of any person. The views expressed or information supplied through this article is mere opinion and observation of the author. The author does not intend to defame, insult or, cause loss or damage to anyone, in any manner, through this article.”

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