President Trump will announce two new regulations that seek to reduce costs in the production of medicines and therefore their prices to the consumer. The president has often said drug prices need to come down and he has already taken several measures to that end.
As one person familiar with planning the measures told Fox News, the Trump administration will announce on Friday, Nov. 20, two new rules aimed at reducing drug prices: the first aims to curb rebates paid to intermediaries in Medicare and the second seeks to link the prices of certain prescription drugs in the United States to their prices in other developed countries.
Both rules have completed the required period of public comment and discussion, so they could go into effect immediately and definitively.
The pharmaceutical sector is a complex and difficult area to deal with, given that it is made up of highly concentrated firms that accumulate a lot of power and interest. However, President Trump has managed to reach important agreements. Both regulations were well received by the sector, according to the sources.
If he were to end the rebates, it would save pharmaceutical companies billions of dollars that pay Medicare intermediaries, the federal health insurance program for the elderly and disabled. The government seeks to redirect these discount savings to consumers.
In mid-September, President Trump signed an executive order to end the questionable practice by Big Pharma of inflating drug prices in Americans’ public health plans, the Washington Examiner reported.
“In most markets, the largest buyers pay the lowest prices, but this has not been true for prescription drugs. The federal government is the largest payer for prescription drugs in the world, but it pays more than many smaller buyers, including other developed nations,” President Trump explained in his argument for the executive order.
“In addition to being unfair, high drug prices in the United States also have serious economic and health consequences for patients in need of treatment. High prices cause Americans to divert too much of their scarce resources to pharmaceutical treatments and away from other productive uses,” the president continued.
Another measure implemented by the Trump administration was the multimillion-dollar loan from the federal government to Kodak at the end of July, as an incentive to local production of drugs and pharmaceutical raw materials.
The objective, besides generating employment and developing the local industry, is to cut foreign pharmaceutical dependence, especially from the Chinese Communist party (CCP), which concentrates the production of more than 80% of the medicines consumed in the country.
According to Fox Business, the government loan will help support the initial costs necessary to reuse and expand Kodak’s existing facilities in Rochester and St. Paul, Minnesota. The photo giant’s new diversification is also expected to create more than 300 new jobs.
President Trump’s intention with these policies is twofold. On the one hand, it seeks to reduce drug prices to help Americans have fairer access to medicines, and on the other hand, it seeks to reduce federal spending so that money can be redistributed to other important issues.