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lol. News flash; He does given a flying _ _ _ _ about drug prices. Someone told him it would be a good thing to say.
Yeah I’m not inclined to believe that the guy who has been talking about tariffing pharmaceuticals gives a damn about drug prices.
Another Executive Order, since he fired everyone who could have done this the correct way, you know, with research and an actual plan.
Trump promised the same thing last term. Biden got it done. Trump didn’t and probably won’t again.
Seems like we’re overcomplicating the situation.
In exchange for the U.S. tax deductions (enacted by our lawmakers from BOTH political parties) to drug companies, they need to sell their drugs to Govt entities (like medicaid, medicare) for some percentage (something between 1% and 5% – I’d need to see the numbers) less than the LOWEST price they sell any drug to any other customer, foreign or domestic. In other words, Most Favored pricing goes to the U.S. Govt. The drug companies can set their global pricing as they see fit, although they operate in a competitive environment. The only caveat is the U.S. Govt gets Most Favored pricing in exchange for U.S. tax deductions for the drug companies.
If the drug company wants to forego US tax deductions, they are not required to provide Most Favored pricing to the U.S. Govt. Of course, then the U.S. govt can then authorize generic production of any drug.
Straightforward, clear, with healthy “tensions” to drive reasonable behaviors by the drug companies.
LD, I like your plan.
Its Infrastructure Week all over again!
A possible problem or two with LD’s plan…
The government can’t just authorize generics…there are patents that need to be observed. Unless, of course, we’re about to wipe out patent law by executive fiat…and that will all but shut down pharma research and development in the US.
What this does is what we pretty much have already. Pharma is free to sell its product around the world at whatever price. Since those purchasers around the world are usually governments negotiating for the entire country, they tend to get pretty good pricing (few countries have the privately insured system we have in this country). Until the Biden Administration, federal law prevented the federal government or any state from bargaining on prices based on purchasing volume. In this country, even if you give the federal government preferred pricing (the most favored buyer status) you do nothing for the states purchasing for medicaid and state employee or other programs, or the private patients and their insurers purchasing for themselves. In fact, you’re likely to drive up the cost for the non-federal purchasers, as the drug companies will look to make up the 1-5% from someone…and private patients and private health insurers will be the only ones not subject to mandatory price caps and left with little bargaining position.
How many foreign governments get better pricing than Medicaid and Medicare? Would love to see that data. Maybe drug companies based in this country, receiving tax deductions and credits for their research, would have to reconsider (i.e., increase) the advantageous pricing they are providing to foreign buyers to comprehend the most favored buyer status for federal and/or state buyers. Foreign buyers don’t seem to worry as much about U.S. patents – see India).
Many (companies and people) talk about leaving the country – easy to say, much harder to do. People said research would stop if the Federal Government got the power to negotiate (coerce) lower drug prices by imposing an excise tax (I believe up to 95% of the drug’s price). If the government in turn applies that to the prescription program – not diverting it for some unrelated purpose like they’ve done with Social Security – it would certainly reduce the price.
Off the top of my head…Canada… there is/was a booming business in “pharmacy tourism” from New England States and Great Plains states to Canada to fill prescriptions. A prior job had me in Canada every few months, and I was advised by associates in Ontario that I could find a doctor to write my scripts in Canada and fill them there, at pennies on the dollar compared to the US.
Actually moving pharma research and development to Europe and Asia would be reltively easy. Ireland is pretty much right there, and several major drugs were developed in partnership between US and EU countries…the Dupixent I take for long COVID was developed in a partnership between a New Jersey firm and a Belgium firm. Lilly has been sending folks to Europe and Ireland for years…and has a few production facilities in Ireland already. Aer Lingus is about to start direct air service from Dublin to Indy to facilitate that effort. Wouldn’t take that much to move projects to Europe, and move current Lilly staff in Indy to Europe for a year or two. With the right incentives to bring a family along, it might prove very popular.
Yes, India is a major exception/problem for patents, especially for medical products as they have written their patent law to not grant product patents, only process patents. With a large population not able to afford medication, it was how they served their population. I’m not defending it…but that is the reality. But India is an exception, not a the general rule. And its not just US patents, its all medical patents…EU, Asian, US.