cross-posted from: https://piefed.world/c/politics/p/1402568/trump-s-suggested-medicare-policies-could-drive-up-drug-prices-globally

• A new modelling study examining the Trump administration's proposed 'Most-Favoured-Nation' pricing models suggests the new policies could reshape pharmaceutical markets worldwide by requiring pharmaceutical companies to pay additional rebates when Medicare prices for these drugs exceed the prices charged in comparable high-income countries.
• For 3 in 4 medicines studied, the cut in estimated Medicare savings from benchmarking to a lower price was larger than the medicine's total annual sales in the reference country. To avoid losing that much revenue, manufacturers would have a strong incentive to raise prices outside the United States or delay launches.
• Separately, multiple manufacturers are reported to have struck confidential deals with the Trump administration. If the medicines for the initial group of 17 manufacturers with deals are excluded from those rules, the researchers estimate the policy's potential savings would be cut by 71%.
• Without these exemptions, the researchers estimate that the administration’s Most-Favoured-Nation pricing models could cut Medicare spending by 16% for medicines provided in hospitals and clinics and 18% for medicines purchased at pharmacies.