WASHINGTON — The Trump administration on Tuesday released the most detailed look to date at its drug pricing policy and its purported impact, claiming huge future savings from the program.
The report, from the administration’s own Council of Economic Advisers, lays out the definition of “most-favored nation” pricing. That’s the definition pharmaceutical giants agreed to in their confidential deals with the administration, a White House spokesperson told STAT in an email. The most-favored nation pricing calculation represents a key underpinning of one of the White House’s top election-year talking points — though many key details of the deals remain private, and their ultimate impacts for consumers uncertain.
The analysis estimated the drug companies’ pledge to offer all new drugs at most-favored nation pricing would save the U.S. $529 billion over the coming decade — though the projection comes with big caveats.
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