Trump rolls out new plan to lower prescription drug costs
Prescription drugs can quickly eat away at your income, accounting for a huge portion of your monthly bills. There could be a light at the end of the tunnel as President Trump announces a plan to save Americans up to $600B on prescription drugs.
The most-favored nation agreement can lead to lower prices
The new prescription drug pricing plan relies on the most-favored nation agreement. The agreement states that the US will be in line with the lowest prescription drug prices paid by other developed nations.
“Our most favored nations’ discounts represent the largest reduction in prescription drug prices in the history of our country,” announced the President on Monday in the Oval Office.
The government is estimating that the plan will save Americans more than $600 billion.
Drug prices are typically higher in the US
Generally speaking, US drug prices are three times higher than those of other countries, especially those overseas.
Trump also stated that the US consumes about 13% of the world's prescription drugs but claims that drug companies get 75% of their profits from the US.
“We were ripped off by the pharmaceutical companies, and we were ripped off more than anything by other countries throughout the world,” said Trump.
Roughly 89% of the branded drug market is included in the deal
While not every branded drug falls under the most-favored nation deal, it does include about 89% of branded drugs.
The plan is meant to lower prices on drugs used for diseases like glaucoma, Parkinson's disease, hemophilia, skin conditions, liver disease, some forms of cancer, and more.
The agreement means state Medicaid programs will be charged the same prices for some drugs as they charge in other countries. In return, these drug companies won't be charged pharmaceutical tariffs.
Only time will tell
Whether or not your prescription drops in price, and by how much, remains to be seen, but the idea that relief could be coming to your wallet is exciting.
Sources: New York Post
