Trump Might Consider ‘Most Favored Nation’ Status To Lower Drug Prices
Forbes explains how the strategy would work. Meanwhile, Aetna has accused several drugmakers of conspiring to overcharge the company, consumers, and the federal government for generic drugs.
Forbes:
Trump May Revisit Most Favored Nation Model For Drug Prices
Buried in the news from last month was an interesting nugget posted by Fierce Pharma: “Following a dinner at Trump’s Mar-a-Lago estate last week, Eli Lilly CEO David Ricks pointed to raising drug prices in other developed nations as a key strategy to reduce costs in the U.S., a potential focus of President-Elect Donald Trump’s administration.” It seems to hint that international price referencing for certain prescription drugs may be on the table during the second Trump administration. Broadly, this is a system of price controls in which an average or minimum price across a group of countries with similar gross domestic output per capita can serve as an anchor towards which differing prices may converge over time. (Cohen, 1/3)
Fierce Healthcare:
Aetna Sues Drugmakers For Alleged Widespread Price-Fixing And Collusion
Aetna is taking legal action against Pfizer, Novartis, Teva Pharmaceuticals and others, saying the list of drugmakers conspired to overcharge the insurer, consumers and the federal government for generic drugs. The complaint (PDF), filed Dec. 31, claims the drugmakers communicated secretly at trade conferences or through phone calls, beginning in 2012, to determine the market share, prices and bids of certain drugs. If communication was in writing, they destroyed the evidence, Aetna claimed. (Tong, 1/3)
Stateline:
As Demand For Weight-Loss Drugs Rises, States Grapple With Medicaid Coverage
North Carolina is the 13th state to begin covering Food and Drug Administration-approved GLP-1 drugs for obesity treatment through its Medicaid program. (Chatlani, 1/6)
In related news —
Bloomberg:
UPS Seeks $20 Billion Lifeline From Medical Supply Shipping
United Parcel Service Inc. has been quietly building a health-care empire to offset stagnating revenue in its core package-delivery business. Specialized logistics services, unlike standard brown-box delivery, have appealing profit margins. A customer who needs injectable medicines shipped overnight in a refrigerated box is willing to pay a hefty premium. (LaPara, 1/6)
