Trump takes aim at prescription drug prices

President Donald Trump has announced a new plan aimed at lowering prices for some prescription drugs. At the White House on Thursday, the president said current pricing practices are unfair: “We’re taking aim at the global freeloading that forces American consumers to subsidize lower prices in foreign countries through higher prices in our country.”

Under the new plan, the Department of Health and Human Services would gradually shift Medicare payments for drugs administered in doctors’ offices, such as cancer medications, to a level based on international prices. Prices in other countries are often lower because governments directly negotiate with manufacturers. HHS estimated the plan would save patients and programs like Medicare around $17 billion over five years. The proposal is structured as an experiment and would apply to half of the country. Officials said they’re seeking input on how to select the areas that will take part in the new pricing system.