Trump's plan to lower drug prices

The president unveiled a much-anticipated "blueprint" to lower drug costs. Will it work?

President Trump.
(Image credit: AP Photo/Carolyn Kaster)

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President Trump has "the power to sink pharmaceutical stocks" with a single tweet, said Katie Thomas at The New York Times. But when he unveiled a much-anticipated "blueprint" to lower drug costs last week, Trump "largely avoided the issues the industry fears the most." Gone were proposals that candidate Trump loudly supported in 2016 — namely, to allow Medicare to directly negotiate drug prices and permit Americans to import cheaper drugs from Canada. In their place were "light on detail" proposals to allow Medicare Part D plans to pay different amounts for the same drug, depending on the illness, and to permit patients to keep a portion of the rebates that are normally pocketed by insurers. Trump also vaguely suggested that countries with lower drug costs were "free-riding" off American innovation and should be forced to pay more. This speech was a "big win" for Big Pharma, said Vann Newkirk at The Atlantic. Nothing Trump said "challenged the pharmaceutical industry or the direct role it plays in setting prices."

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