Last week, President Trump declared his administration would soon issue an executive order mandating a so-called “favored nations” policy in which U.S. government (presumably, Medicare and Medicaid) payments for drugs would be capped at the lowest price paid by a developed country. Thus far, details on the proposed policy have been scant.
Perhaps this is a political ploy. It’s election season after all. Polling shows healthcare costs, and drugs in particular, are a major concern for voters across the country. Moreover, drug manufacturers appear to be unpopular among constituents.