The laws of economics are stubborn things. If the Trump administration really wants to do the most good for patients in the United States and worldwide, they’ll scrap this most favored nation order.
Earlier this month, President Donald Trump signed what he called “one of the most consequential Executive Orders in our Country’s history.”
The order is essentially an updated version of his administration’s 2020 “Most Favored Nation” policy. It directs pharmaceutical companies to tie the U.S. prices of their drugs to the lower prices that other developed countries pay.
It certainly seems unfair that Americans pay more for drugs than foreigners. So the president’s insistence that drug companies offer Americans the best deal they provide worldwide has intuitive appeal.
But the economics behind this proposition are much more complicated.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.
Tying U.S. Drug Prices To Foreign Markets Risks Innovation And Lives
Sally C. Pipes
The laws of economics are stubborn things. If the Trump administration really wants to do the most good for patients in the United States and worldwide, they’ll scrap this most favored nation order.
Earlier this month, President Donald Trump signed what he called “one of the most consequential Executive Orders in our Country’s history.”
The order is essentially an updated version of his administration’s 2020 “Most Favored Nation” policy. It directs pharmaceutical companies to tie the U.S. prices of their drugs to the lower prices that other developed countries pay.
It certainly seems unfair that Americans pay more for drugs than foreigners. So the president’s insistence that drug companies offer Americans the best deal they provide worldwide has intuitive appeal.
But the economics behind this proposition are much more complicated.
Read the Forbes op-ed here.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.