Most people are unlikely to see drug cost savings from president Trump’s “Most Favoured Nation” proposal.
U.S. President Trump signed four executive orders in July that propose ways to lower drug costs in America. Three of the four executive orders were released publicly. The fourth which Trump has referred to as the “most favoured nation” proposal has still not been released.
However, if a “most favoured nation” approach were to be implemented, it would have no direct impact on the lion’s share of drug spending in America. According to an analysis by the KFF (Kaiser Family Foundation), the plan which would apply only to Medicare Part B drug spending accounts for just 7% of all prescription drug spending in the U.S.
The plan would potentially lower drug prices for about 4 million people in Medicare Part B but would have not impact for the 45 million Medicare Part D beneficiaries, the 157 million people with employer-provided insurance or the millions more who lack coverage altogether.