As of now, I am in control here, in the White House

Trump Says He Will Order Reduction in Drug Prices

Let’s be careful here. If we slash pharmaceutical company earnings, then the money won’t be there for all the wonder drugs they regularly come up with.

Better to work through trade deals to reduce the ability of other countries to offer drugs produced here at reduced prices.

According to the Washington Examiner:

The White House is writing an executive order that would reduce what the U.S. pays for drugs so that it’s more in line with the lowest price paid elsewhere in the world, Trump told reporters Friday.

“As you know, for years and years other nations paid less for drugs than we do,” Trump said Friday at the White House. “Sometimes by 60-70%. We’re working on it right now, we’re working on a favored nations clause, where we pay whatever the lowest nation’s price is. Why should other nations — like Canada — but why should other nations pay much less than us? They’ve taken advantage of the system for a long time, Pharma.”

Trump said the announcement was coming “very shortly” but did not provide other details about how the plan would work. A “favored nations clause” refers to a contract in which a seller gives buyers the same best terms that it offers to other buyers.

4 Responses to Trump Says He Will Order Reduction in Drug Prices

  1. “Let’s be careful.” Yes, there are two sides of the coin. Here we have price controls on 24 basic food items. The cost to the producers of pork & beef has gone up. There is no incentive for the producers to produce more. This will leave less supply for the consumer. I like the way they do eggs. A dozen of regular is $1.87. Larger size eggs have a higher price. Same way with rice. White is 50 cents a pound. Fancy and brown are higher.

    CBS has been running stories of Americans making express run to Canada to buy insulin. One lady showed a bottle. The US price was $600. The Canadian price was $30. That looks like gouging in the US and workers paying higher taxes in Canada.

    During the Nixon Administration I’ve seen how price controls do not work.

    This could lead to Pharma developing fewer new drugs.

  2. There are some drugs that treat irritating or cosmetic issues, some that treat life or death issues.
    Surely, we can make a difference in price for the life or death meds.

  3. Sorry Keith – why should Americans pay higher prices for medicines while other countries negotiate a lower price (sometimes significantly lower)?

    Let the other countries pay more for medicine and participate in the revenue stream to pharms so that they are contributing to R&D!

  4. I think Keith is missing something here.
    Why shouldn’t the US negotiate the price it pays for pharmaceuticals it buys? The pharma companies won’t negotiate themselves into bankruptcy. They also won’t negotiate themselves out of the ability to do research that is the core of their business.
    What would likely happen is that negotiations overseas would likely change to a level that would equalize prices globally.