President Trump announced Friday that he will proceed with his plans to peg the prices of certain drugs prescribed largely at doctors’ offices under Medicare Part B to the lower prices that other developed nations pay for those drugs. That may sound good at first glance, but in reality, the move will slow the development of new drugs, consigning countless patients to needless suffering and premature death.
The president said he’s trying to secure the best deal for American patients. But his move will deprive drug companies of billions of dollars in revenue, making it impossible for them to spend the money they no longer earn to develop new drugs
As Stephen J. Ubl, president of the Pharmaceutical Research and Manufacturers of America, correctly pointed out in a statement after President Trump’s announcement: “It defies logic that the administration is blindly proceeding with a ‘most favored nation’ policy that gives foreign governments the upper hand in deciding the value of medicines in the United States. History proves that when governments take unilateral action to set prices, it disrupts patient access to treatments, discourages investment in new medicines and threatens jobs and economic growth.”