“It puts at risk the hundreds of billions of dollars that our member companies intend to invest in America, increasing our dependence on China for cutting-edge medications.”
In 2018, the Trump administration proposed linking Medicare’s prescription reimbursements to international pricing, and shortly after the 2020 election, the rule was implemented.
The seven-year approach would have given the US the opportunity to benefit from bargains made by other peer nations.
Who generally pay much less for pharmaceuticals due in large part to the fact that their governments frequently set the price.
Medicare would have covered the lowest cost of 50 Part B medications given in doctor’s offices among those peer nations under the 2020 proposal.
An estimated $86 billion would have been saved, according to the administration.
In 2022, the Democrats passed the Inflation Reduction Act, which gave Medicare the historic authority to negotiate drug costs for a limited selection of medications each year.
