https://www.newsweek.com/will-health-costs-plummet-90-under-trump-experts-2072736
While the order aims to tackle the major issue of high prescription drug costs for Americans, experts warn that the fact it relies on manufacturers to voluntarily lower their prices means little change could be felt for consumers.
Anderson said: "The executive order is much ado about nothing. Drug companies are not going to voluntarily lower their prices, and other countries are not going to voluntary increase their prices."
Anderson also thought the order could face political challenges. "Congress is not going to be receptive to this idea," he said, adding that the Democrats proposed a version of the "most favored nation" idea, in the Build Back Better legislation that passed in the U.S. House of Representatives in 2021.
He added: "But all the Republicans opposed it. It seems very unlikely that the Republicans would make a 180 degree change and now support the idea."
There are two sides to this.
ReplyDeleteHere in Canada, provincial governments control the costs of medications by restricting access to the provincial formulary which pays for drugs for seniors and those on welfare. The major advantage for drug companies is that if they're on the formulary, they are guaranteed good sales so many will cut their prices.
The downside is that some drug companies don't want to cut the price and will not release the drug in Canada. As a result, while we have access to lots of common drugs at reasonable prices, newer but expensive drugs often don't come to Canada or do so years after they've been out in the US.