President Donald Trump is considering a complete executive mandate that would slash prices on nearly all branded prescription drugs offered to Medicare and other government plans, according to two trade sources who had discussions with the White House.
The order under dialogue would be much more apparent than the Administration’s earlier proposal to slash prices on physician-administered, or Part B, medication by tying prices to decrease costs in other nations.
The administration is now taking a look at methods to use this or a similar technique to slash prices in Medicare’s much larger Part D, which is for broadly used prescription drugs sufferers take at home, like for cholesterol and blood pressure, the sources stated.
The White House refused to remark, and it was unclear how far along with any such plan was from being offered. The U.S. Division of Health and Human Services also declined to comment.
People pay the highest costs for pharmaceuticals on the planet as most other grown nations have single-payer systems in which the federal government negotiates drug prices for its people.
The U.S. administration in 2016 spent around $29 billion on pharmaceuticals in Medicare’s Part B, which incorporates most injectable medicines, and nearly $100 billion in Part D, which covers as capsules and other medicines usually given in pharmacies.
Trump is also mulling extending the pricing controls to the U.S. Division of Defense, which runs the Tricare health plan for army personnel and their families, in addition to the Division of Veterans Affairs, the sources said.
The drug pricing government mandate might come as soon as the following few weeks, the sources said.