Trump Executive Order 151 - Prescription Drug Pricing for Americans |Policy Precision Podcast

United States' Disproportionate Contribution to Global Pharmaceutical Profits:
The Executive Order asserts a significant imbalance in the global pharmaceutical market, where the United States, with "less than five percent of the world’s population," is responsible for funding "around three quarters of global pharmaceutical profits."
This is attributed to a "purposeful scheme" where drug manufacturers deeply discount prices in foreign markets and offset this by charging "enormously high prices in the United States."
The order explicitly states, "Americans will no longer be forced to pay almost three times more for the exact same medicines, often made in the exact same factories."
2. The Concept of "Global Freeloading" and Price Discrimination:
The Executive Order labels the behavior of foreign nations as "global freeloading," arguing they benefit from American-funded innovation while paying lower drug prices.
It highlights that drug manufacturers agree to "other countries’ demands for low prices, and simultaneously fight against the ability for public and private payers in the United States to negotiate the best prices for patients."
The order aims to end this "abuse of Americans’ generosity" and address "global freeloading and price discrimination against American patients."
3. Implementation of Most-Favored-Nation (MFN) Pricing:
The core policy outlined is to ensure Americans "have access to the most-favored-nation price" for prescription drugs and biologics. This implies accessing the lowest price a drug manufacturer offers in any developed nation.
The Administration will take "immediate steps" and "additional aggressive action" if manufacturers fail to offer the MFN lowest price.
Specific actions outlined include:
The Secretary of Health and Human Services (HHS) communicating "most-favored-nation price targets to pharmaceutical manufacturers" within 30 days.
Reviewing actions regarding the export of pharmaceutical drugs or precursor material that contribute to price discrimination.
Reviewing and potentially modifying or revoking drug approvals if drugs are deemed unsafe, ineffective, or improperly marketed.
4. Addressing Foreign Nations' Role in Price Suppression:
Section 3 specifically directs the Secretary of Commerce and the United States Trade Representative to take action against foreign countries engaged in acts, policies, or practices that are "unreasonable or discriminatory or that may impair United States national security and that has the effect of forcing American patients to pay for a disproportionate amount of global pharmaceutical research and development, including by suppressing the price of pharmaceutical products below fair market value in foreign countries."
5. Facilitating Direct-to-Consumer Sales at MFN Price:
The Executive Order, "To the extent consistent with law," directs the Secretary of HHS to "facilitate direct-to-consumer purchasing programs for pharmaceutical manufacturers that sell their products to American patients at the most-favored-nation price."

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