US drug-pricing plan could reshape medicine costs worldwide
A new US drug-pricing policy could substantially reduce what Medicare spends on costly medicines, but it may also have consequences far beyond the United States, according to a modelling study published in The Lancet.
A recent U.S. policy aimed at regulating drug pricing could significantly impact the costs of healthcare, with potential global repercussions, according to a study published in The Lancet. Medicare, the U.S. government insurance program serving around 68 million seniors and disabled individuals, would adhere to the pricing structures of select brand-name medications in 19 other high-income nations.
To analyze the projected effects, researchers assessed 195 medicines valued at a staggering $87.9 billion annually in Medicare spending. The study indicates a potential reduction in Medicare spending by $5.2 billion for hospital and clinic medications, and an additional $6.4 billion for pharmacy-acquired drugs. Despite these expected savings, pharmaceutical companies might adjust their pricing strategies abroad.
About 73% of the medicines evaluated would see Medicare savings surpassing the product's entire annual sales in the reference country. This could lead to companies raising prices in lower-cost markets, delaying product launches, or employing other tactics to prevent becoming the benchmark for U.S. drug prices. The authors caution that these findings are based on modeling and do not predict the actual actions companies will take.
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