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In what may have been the last significant action of his presidency, President Trump issued two executive orders designed to lower prescription drug spending in Medicare.
The first order would eliminate the current system of “rebates” for prescription drugs covered by Medicare Part D. The second order, dubbed the “Most Favored Nation” model, ties Medicare payments for advanced medicines covered by Medicare Part B think chemotherapy infusions and other physician-administered medicines to the lowest prices paid by governments abroad.
The “rebate rule” will reduce out-of-pocket drug costs for American patients. The “Most Favored Nation” model will reduce access to advanced medicines today and deprive American scientists of research dollars tomorrow.
For years, pharmaceutical companies have been putting profits first, and the public good second. The new president and the 117th Congress must seize this moment to reverse Big Pharma’s price gouging and put the public good first.
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