The White House has announced new agreements with nine pharmaceutical companies to lower prescription drug prices, as part of President Trump’s broader effort to cut healthcare costs in line with other nations.
Background
The agreements lower drug prices for state Medicaid programs to most favored nation prices, offer discounts for direct consumer purchases from the administration’s website, and require companies to remit part of increases in foreign revenue for American benefit.
Impact
The agreements impact drugs with prices higher than what other European nations are paying, including drugs used for treatment for diabetes, rheumatoid arthritis, multiple sclerosis, asthma, COPD, Hepatitis B and C, HIV, and some cancers.
Companies Involved
The agreements are with Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis, and Sanofi, in addition to previously announced agreements with Pfizer, AstraZeneca, EMD Serono, Novo Nordisk, and Lilly.
Reaction
Dr. Mehmet Oz, the administrator of Centers for Medicare and Medicaid Services, said, “What started as a trickle now is a flood. This signifies the entire industry is coming in.” Rob Davis, Chairman and CEO of Merck, noted, “We’ve consistently said that we support the notion that we have to find ways to make drugs more affordable and accessible in the United States.”
Related Issues
The expiration of enhanced Affordable Care Act subsidies at the end of the year and no deal or consensus in Congress on an extension or health plan may lead to higher premiums for millions of Americans, according to KFF.
For more information on the agreements and their impact, visit the White House website.
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