A recent Executive Order directing HHS to develop price targets for imported drugs has really stirred up the hornet’s nest. It is common knowledge that many drugs in other countries cost a fraction of what we pay in the US. The goal of the Executive Order is to obtain ‘most favored nation’ (MFN) pricing for drugs….. in short, the US should pay the same or less than anywhere else. The Executive Order suggests that the prices of prescription drugs will drop “almost immediately, by 30% to 80%.”
The article spotlighted below is a doozie. Talk about a deep dive.
The authors have peeled the plan to its core and details where the Order goes beyond just MFN.
It is noteworthy that no drugs were targeted by name.
Similarly, no conditions for implementation or compliance were specified… yet.
One initiative, however, jumps out as a real jaw dropper.
The Executive Order directs HHS to “facilitate direct-to-consumer purchasing programs”. That sounds like no PBM, no health plan preauthorization, no pharmacy. We are still letting this concept sink in.
The Order was released with little specificity. However, HHS has already started to get gears in motion. Pharma will be watching HHS closely to determine how to respond.
Unpacking President Trump’s New Executive Order on “Most-Favored-Nation” Prescription Drug Pricing
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