Trump Administration Considers Tying U.S. Drug Prices to International Rates

The Trump Administration may link U.S. drug prices to lower international prices, posing a major concern for pharmaceutical companies. This policy could disrupt U.S. healthcare and biosciences innovation. Industry trade groups and officials are divided on the impact, especially amid previous failed attempts for similar pricing reforms.

The Trump Administration is exploring a potential policy to tie U.S. drug prices to the lower costs paid in other developed countries, marking a significant concern for the pharmaceutical industry. This move aims to address the disparity where the U.S. pays significantly more for medications.

According to two sources, who chose to remain anonymous, it is expected that this policy would emerge from agencies overseeing Medicare and Medicaid. The initiative reflects a longstanding phrase of the Trump Administration's aim to bring down the soaring prices of pharmaceuticals in the nation.

While facing numerous hurdles, including logistical and political, industry experts highlight potential challenges such as implementing the policy and its wide-reaching effects on the healthcare market. Stakeholders express concern over potential disruptions to innovation in U.S. biosciences.

(With inputs from agencies.)