Michael Chernew, director of the Healthcare Markets and Regulation Lab at Harvard Medical School and American Journal of Managed Care (AJMC) editor-in-chief, says the international pricing index proposed by the Trump White House could lower prices, but that it also carries the potential for some blowback.
“Usually what happens in policies like that is the high-paying country, in this case the United States, would end up paying somewhat less, but the point here to understand is the low-paying countries would pay somewhat more,” Chernew said in an interview with AJMC. “The question is: Where in the middle would we end up?”
Chernew added an IPI could bring a “whole slew of potential unintended consequences.”
“A good example would be what it does to innovation in pharmaceutical areas?” he said. “How it influences other types of contracts that are going on in the United States outside of Medicare?”
To watch the interview and read the transcript on AJMC, click here.