Overview

• The Trump administration is exploring a Medicare pilot program that would link U.S. prescription drug prices to those in other developed countries.
• This initiative revives an earlier Trump-era proposal, which was blocked by a court, despite projections it could save taxpayers over $85 billion in seven years.
• The U.S. pays the highest drug prices globally, often nearly three times those in peer nations, prompting renewed efforts to reduce costs.
• Pharmaceutical industry leaders have labeled the proposal an 'existential threat' and warned it could disrupt healthcare markets and stifle innovation.
• Experts highlight significant challenges for implementation, including CMS staffing shortages and complexities in cross-country price negotiations.