Last week, the Trump administration sent letters to 17 leading pharmaceutical manufacturers outlining steps to bring down prescription drug prices in the United States to match the lowest price offered in other developed nations (known as the most-favored-nation).
One of the best points made eliminates the middle man.
Providing manufacturers with an avenue to sell pharmaceuticals direct to patients — without middlemen, at low costs, and without the influence of pharmacy benefit managers (PBMs).
PBMs add major costs to drugs, as do health insurers who are incentivized to do so by stipulations in Obamacare.
Getting them out of the equation would help lower drug prices quite a bit.
In January, Trump denounced the $557 billion industry as “horrible middlemen,” responsible for—and “rich as hell” from— America’s incomparably high prescription drug prices. He vowed to get rid of them. They are supposed to regulate prices and do the opposite while carving off pieces of the funds for themselves.
Trump will prove to be very consequential in this effort. He’s not giving up. His letter was serious and pointed.
