On July 24, President Donald Trump signed four executive orders regarding drug pricing in the U.S., including a plan to match prices for certain Medicare drugs to those offered in other countries. President Trump offered the pharmaceutical industry an August 24 deadline to propose an alternate plan to control rising drug prices, after which point he would otherwise enact the foreign drug cost mandate.
After the August deadline passed, PhRMA, the pharmaceutical industry’s lobbying group, reportedly offered a counter to the President’s plan. The new offer has yet to be released to the public.
A report from Politico claims that PhRMA has offered to cut prices by 10% for physician-administered drugs paid through Medicare Part B, as well as a voluntary 10% “market-based” discount in the sales price for covered drugs. The plan’s specifics remain unknown, but the reported 10% savings on drug prices is much lower than the 30% in cost savings the White House projected in its international pricing proposal.
According to an internal memo on the counteroffer, reported by Politico, “There would also be a commitment from PhRMA to work with [Medicare and its Innovation Center] on additional Part B and D reform policies over the long run.”