Trump's New Deal on Drug Pricing

The White House is looking to slash what Medicare pays for drugs to roughly match the cost in European countries. US residents pay more for meds than any other high-income country; some drugs cost 4 times more than in other countries, tweeted health secretary Alex Azar.

The current pricing structure incentivizes physicians to prescribe the priciest medications, because they are reimbursed based on drugs’ average price. The proposed change would fold drug prices in other advances economies—where drugs are cheaper—into that average, lowering their price. Under the proposal doctors would be reimbursed at a flat rate.

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