Trump administration preparing drug price executive order

US President Donald Trump said on Friday he is preparing a measure to make the United States pay more for prescription drugs than in countries where these drugs have the lowest cost in the world.

“We are going to announce something very soon, a clause of privileged nations,” Trump said in statements to reporters at the White House, before taking off for Bedminster to spend the weekend.

“(That measure) will allow us to pay whatever they pay in the nation with the lowest price, why do other countries, like Canada, have to pay much less than us? Pharmaceuticals have taken advantage of us for a long time” , he added.

Trump added that he will promote that plan through an executive order or decree, but did not specify how it would be implemented.

The president has long been denouncing the high price of drugs in the United States, and in October last year already presented a pilot program focused on the agency in charge of the federal program of subsidized medical insurance for the elderly, called Medicare.

Under that program, which is not expected to start until the spring of 2020, the agency that runs Medicare could negotiate directly with pharmaceutical companies the prices of certain drugs, based on the costs paid for them in other industrialized economies.

Unlike in most developed countries, in the United States, the government does not regulate the cost of most medicines, which gives pharmaceutical companies free access to determine their prices.

Trump’s complaints are based in part on his conviction that international pharmaceutical companies have “rigged the system against American consumers,” and his plans could cause the costs of prescription drugs to rise overseas.

Craig Garthwaite, an economist at Northwestern University, explained last year to the Vox portal that the idea is that “when a pharmaceutical company negotiates with Germany, the discount they offer to Germany has to be moved to the United States. the foreigner would rise and those of the United States would go down “.

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