On Friday, the Trump Administration released several Executive Orders concerning prescription drug costs. National Taxpayers Union (NTU) President Pete Sepp issued the following statement:
"The most favored nation and importation Executive Orders will ultimately fail to reduce prescription drug costs in the American health care system. Proposals like an international pricing index or most-favored nation clause in Medicare, or allowing prescription drug importation from Canada and other countries, seek not to import products or particular efficiencies from foreign countries - they seek to import those countries' price controls. Americans pay more for prescription drugs in part because these foreign price controls have forced American companies to sell their products overseas for less than they are worth, squeezing that cost bubble to the detriment of American patients. In seeking to emulate those foreign countries and their price controls, these Executive Orders would only shift costs on to American patients in private insurance plans. The result could be higher prices for new drugs, fewer incentives to undertake the enormous cost of developing new drugs, or some combination thereof.
National Taxpayers Union has pointed to numerous reforms that would reduce Americans' prescription drug costs without reducing the very incentives that make America the world's leader in the development of new cures. This includes Medicare Part D redesign and reform, pro-growth changes to the tax code that make it less expensive for companies to invest in American manufacturing, and other policies that encourage our allies to rethink their own price controls. Unfortunately, the most favored nation and importation Executive Orders issued today fail to advance any of these initiatives. The Administration should go back to the drawing board on these Executive Orders."
To speak with President Pete Sepp about the impact of these Executive Orders, contact Courtney Manley, NTU Communications Associate, at 703-299-8671 or Courtney.manley@ntu.org.