Lowering Drug Prices by Putting America First
Medicare Required to Pay No More Than Lowest Foreign Drug Prices
What it does
Federal health agencies must test payment models to limit Medicare Part B and Part D drug payments to the most-favored-nation price.
Real-world impact
- Tests new Medicare payment rules for expensive prescription medicines.
- Aims to prevent Medicare and taxpayers from paying higher foreign prices.
- Could encourage drug companies to lower U.S. prices to match foreign levels.
Topics
Summary
This executive order directs the federal government to test new payment rules so Medicare will not pay more for certain expensive Part B and Part D drugs than the lowest price those drugs sell for in comparable wealthy countries. The order defines the "most-favored-nation price" as the lowest adjusted price among OECD countries with similar per-capita income.
The Secretary of Health and Human Services must develop and test payment models to see if using those lower prices reduces poor health outcomes and spending.
Questions, answered
Ask questions about this executive order and its implications. Try:
- “What agencies are affected by this order?”
- “How does this order change existing policy?”
- “What are the practical implications of this order?”