Trump Signs Executive Order to Ensure Americans Pay Lowest Prices for Prescription Medications
Washington D.C - In an effort to ensure American patients pay the lowest prices for prescription medications, President Trump signed an executive order on May 12th, titled "Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients." The order aims to bring U.S. drug prices in line with those of other countries, particularly high-income nations like Canada, United Kingdom, and Germany.
According to the White House, the country's healthcare system pays significantly more for brand-name prescription medications compared to other developed countries. This is largely due to research and development costs, as well as first-line access to cutting-edge medications.
However, experts argue that this disparity is not entirely justified, given that many countries have negotiation processes in place to determine pricing. The President's executive order takes aim at these practices, stating that "drug manufacturers, rather than seeking to equalize evident price discrimination, agree to other countries' demand for low prices, and simultaneously fight against the ability for public and private payers in the United States to negotiate the best prices for patients."
The impact of this executive order on workers' compensation costs remains unclear, as it primarily focuses on brand-name prescription medications. A comparison of three high-cost specialty drugs - Pluvicto (lutetium Lu 177 vipivotide tetraxetan), Gattex (teduglutide), and Stelara (ustekinumab) - revealed significant price disparities between the U.S. and other countries.
For example, Pluvicto, a radiopharmaceutical treatment for prostate cancer, costs around $255,000 in the U.S., with Mexican payers paying just $30,000 to $50,000. Similarly, Stelara, used to treat autoimmune disorders, costs more than $13,860 on average in the U.S., while Canadian patients pay under $4,000 for a 30-day supply.
According to experts, implementing this executive order requires lengthy rulemaking processes, which could be derailed by special interests, Congress, or litigation. "The bottom line is any relief that may come due to this latest executive order will be long in coming, if it comes at all," said Allen, vice president of government affairs for Enlyte's Pharmacy Solutions Team.
An alternative solution proposed by experts is allowing employers to direct care to managed pharmacy networks, which have been found to be effective in controlling costs and negotiating lower prices. While not as dramatic as an executive order, this approach offers a tried and reliable method for managing drug spending, with nearly every other commercial and government health plan already using managed pharmacy networks to achieve similar results.
It remains to be seen whether the President's latest executive order will have a significant impact on workers' compensation costs or bring about lasting change in price setting at the manufacturing level.