President Donald Trump in his much-anticipated drug pricing speech revealed his blueprint to lower drug prices and out-of-pocket costs.
According to the plan, the Health and Human Services department has identified four key challenges in the drug market:
- High list prices;
- Seniors and government programs overpaying for drugs due to lack of the latest negotiation tools;
- High and rising out-of-pocket costs for consumers; and
- Foreign governments free-riding off of American investment and innovation.
The blueprint involves a two-phase solution for each challenge. The first phase involves “immediate action,” the second involves actions with the HHS is “actively considering.”
“Today’s complex U.S. pharmaceutical market is characterized by high and rising list prices, increasing consumer out-of-pocket costs, and a new era of high-cost drugs lacking competition,” the blueprint states.