- Dec 2, 2015
- Reaction score
- California Caliphate
- Political Leaning
One of the rules will force drug companies to treat the U.S. as a "most favored nation," guaranteeing Americans lowest drug prices around the globe. | Health
For example, what this means is pharma can no longer charge medicare $900 in the USA for a dose of shingles vaccine, and $400 in Canada. They must charge Medicare $400, not $900.One of the rules implements what is known as a “most favored nation” approach that limits what Medicare pays for medications to the lowest price paid by other economically advanced countries. The administration says it could save $28 billion for Medicare beneficiaries through lower copays.
The other rule would require drug makers to push rebates and discounts directly on to Medicare patients rather than to insurers and middlemen pharmacy benefit managers. The Trump administration says the rule could potentially result in 30 percent savings for patients, although the Congressional Budget Office estimates it could ultimately cost taxpayers more.
Both rules are set to take effect on January 1, although the pharmaceutical industry is expected to mount legal challenges that could delay or block the rules. The rules could also be overturned if Joe Biden takes office in January.
“The drug companies don’t like me too much. But we had to do it,” Trump said in announcing the new policies at the White House. “I just hope they keep it. I hope they have the courage to keep it.”
This is especially important with Covid vaccines, since I understand the government is picking up the whole tab.
This only applies to first world countries.