Donald Trump signs new, expanded executive order to lower US drug prices

Washington, 14-Sep-2020

The industry's largest trade group - the Pharmaceutical Research and Manufacturers of America, or PhRMA - denounced Trump's move as "a reckless attack on the very companies working around the clock to beat Covid-19." PhRMA President and Chief Executive Stephen Ubl called the policy "unworkable" and an "overreach," and said it would give foreign governments a say in how the United States provides access to treatments. Larry Levitt, health economist at the Kaiser Family Foundation research organization, wrote on Twitter that Trump's executive order "does not by itself do anything. It has to be followed up by regulations, which will take time." The Biotechnology Innovation Organization said the move would reduce industry investment. "We will use every tool available - including legal action if necessary - to fight this risky foreign price control scheme," Dr. Michelle McMurry-Heath, president and CEO of the group, said in a statement. Dan Mendelson, founder of consultancy Avalere Health, said Trump's move would not affect drug prices for senior citizens before the Nov. 3 election, adding that polling shows Americans are more concerned with the coronavirus than drug prices. He said Democratic presidential candidate Joe Biden "has a 20 point advantage over the Trump on Covid19, so it's not surprising to see the administration try to change the subject." The Republican president signed an executive order in July to require Medicare to tie the prices it pays for drugs to those paid by other countries. Its implementation, however, was delayed as the administration sought to work out a solution with the industry.