Trump’s secretive pharma deals may undermine drug-pricing policy

Ed’s stories explore prescription drug pricing, affordability and access, as well issues surrounding patents, litigation, and legislation. He is also the author of the morning Pharmalittle newsletter and the afternoon Pharmalot newsletter.

The projected savings from a highly touted Trump administration plan to lower Medicare drug costs may be drastically reduced — by as much as 80% — thanks to secretive deals cut with more than two dozen pharmaceutical companies, according to a new analysis.

At issue is an approach known as “most-favored nation” pricing, which would tie the prices paid by Medicare to what 19 other wealthy nations pay for the same medicines. The White House has maintained the effort would save Medicare $26 billion over several years and help mitigate the long-standing problem of increasingly unaffordable prescription drugs.

To make this happen, the administration is creating two pilot programs — GLOBE for Medicare Part B and GUARD for Medicare Part D — that will require drug companies to pay additional rebates if their prices exceed the lowest international price found in those 19 countries. More specific details about the rules are due shortly.