After talks broke down with the pharmaceutical industry’s major lobby, PhRMA, the White House announced its plan to move ahead with an executive order aimed at slashing prescription drug prices. The plan, known as the ‘Favored Nations’ order, will tie certain Medicare drug prices to that of the lowest price paid by other nations with a similar per-capita gross domestic product. Price cuts could start before election day. PhRMA and other lobbyists swiftly condemned the rule. “It’s an “irresponsible and unworkable policy,” said PhRMA CEO Stephen Ubl. Pricing advocacy groups expressed skepticism as well. The policy “is unlikely to do much,” said Public Citizen in a statement, arguing that direct negotiation with drug companies—as done in other countries—is a more effective approach. Read more here.
(Source: Sarah Owhermohle, Politico Prescription Pulse, September 15, 2020)