For years Americans have subsidized research by pharmaceutical companies by paying higher prices for drugs than other countries. Yesterday The Epoch Times reported that President Trump has signed an Executive Order that requires drug companies to charge Americans the same price for druges that the companies charge other countries.
The article reports:
The latest step would replace a July 24 Trump executive order.
It extends the mandate to prescription drugs available at a pharmacy, which are covered under Medicare Part D. The July version focused on drugs typically administered in doctors’ offices and health clinics, covered by Medicare Part B.
Specifically, it would pay a price for a drug that matches the lowest price paid among wealthy foreign governments. Medicare, the government healthcare program for seniors, is currently prohibited from negotiating prices it pays to drugmakers.
…Trump took executive action in late July on drug prices, which included discounts on insulin and EpiPens for hospitals, which would be passed down to patients, allowing the United States to allow the legal importation of prescription drugs from Canada and other countries where prices are lower, and a Medicare program will be required to purchase drugs at the same price that other countries pay.
The article notes:
The orders received swift pushback from the pharmaceutical industry. Pharmaceutical Research and Manufacturers of America said in a statement that the move was “a reckless distraction that impedes our ability to respond to the current pandemic—and those we could face in the future.”
The pushback is not a surprise. The pharmaceutical industry pays very well.
For example according to Fierce Pharma:
Len Schleifer, Regeneron has a salary package of $41.97 million
Jeffrey Leiden, Vertex Pharmaceuticals has a salary package of $36.64 million
Brent Saunders, Allergan (formerly Actavis) has a salary package of $36.61 million
You get the picture. While I believe in the Free Market and don’t want to see the government interfere in anyone’s salary, I also believe that there is something askew here. It seems to me that as the President moves to bring drug prices into the rhelm of reality, the pharmaceutical companies might want to re-evaluate what they are paying their CEO’s. I am sure the President’s Executive Orders will impact the bottom line of the pharmaceutical companies. The question will be how they choose to handle the revenue cuts.$
7 illion $41.million