US President Trump stated that the cost of Americans buying prescription drugs is often 80% higher than the cost of buying some of the most expensive drugs in Germany, Canada and other countries. On Friday, Trump signed four executive orders aimed at reducing the high cost of prescription drugs in the United States. If these orders are finalized, the prescription drug market in the U.S. will undergo comprehensive changes.
The first order was for the high price of insulin, requiring the Federal Community Medical Center to pass on the discounts they received on the drug and EpiPens directly to patients. Trump stated that these providers should not receive these discounts while charging patients "massive, full-price".
The second order will allow states, pharmacies and wholesalers to import medicines from Canada, which are usually cheaper than the U.S.. Previously, according to the regulations of the Food and Drug Administration, in most cases, it was illegal to import drugs for personal use from other countries. The pharmaceutical industry and regulatory agencies also stated that imported medicines may threaten consumer safety. But supporters, including Senator Bernie Sanders, said that importing drugs from other countries would increase competition and significantly reduce drug prices.
The third order aims to prevent "middlemen" or pharmacy benefit managers from receiving "huge discounts." The Minister of Health and Human Services Alex Azar said that drug companies are currently paying about $150 billion in undisclosed commissions to middlemen, often in exchange for more favorable drug insurance. The new regulations will require this part of the commission to be used for the elderly, reducing the cost of prescription drugs for the elderly by about 26% to 30%, or $30 billion per year.
The fourth order will specifically allow Medicare to implement the so-called "international pricing index", that is, to purchase drugs at the same price as other countries. Trump signed the fourth order, but said it may not need to be implemented, and currently keep it until August 24 to allow the industry time to make some suggestions to reduce drug prices. It also stated that executives of pharmaceutical companies are scheduled to meet at the White House on Tuesday. source