4/24/2025
One thing to do today: Contact your elected representatives to share your thoughts on balancing innovation, affordability, and accessibility in drug pricing reform.
Read the original article: Reuters
What Happened
The Trump Administration is reportedly considering a policy to link U.S. drug prices to those in other developed nations, a strategy known as international reference pricing. This would apply primarily to medications covered by Medicare and could result in significantly lower costs for prescription drugs in the U.S. The proposal is still under internal discussion and might be piloted by the Centers for Medicare and Medicaid Services Innovation Center (CMMI).
Why It Matters
The U.S. pays more for prescription drugs than any other country — often several times more. This policy aims to reduce drug spending, save taxpayer money, and improve healthcare affordability, especially for seniors and those on Medicare. However, the pharmaceutical industry sees it as a serious threat, arguing that higher drug prices help offset the years of research, development, and costly failures involved in bringing new treatments to market — and that disrupting this model could hinder innovation and impact the broader healthcare system. Note that other high-income nations often pay less because they set strict pricing benchmarks and use health technology assessments to determine whether a drug’s benefits justify its price.
Who It Affects
- Patients – Especially those on Medicare who could see significantly lower drug prices.
- Taxpayers – Potential savings of $85 billion over seven years could reduce government healthcare spending.
- Pharmaceutical companies – Could see reduced profits, potentially impacting investment in research and development.
- Healthcare professionals – May face shifts in prescribing behavior or treatment availability.
Why Your Voice Matters
Whether you support or oppose this policy, your voice influences lawmakers' decisions. These policies are shaped by public pressure and advocacy from constituents, healthcare professionals, and interest groups. Letting your representatives know your position ensures the system works with your values and needs in mind. Balancing innovation with affordability is not a zero-sum game; policies that encourage efficiency, increase transparency, and promote competition could ensure that new treatments remain both groundbreaking and accessible.
Why You Should Care
Prescription drug affordability impacts millions of Americans. Even if you're not on Medicare, this policy could set a precedent that expands to other health plans. It’s also a critical moment for determining how much control the government should have in negotiating prices — a debate that affects innovation, equity, and public health.
What You Can Do
If You Support International Reference Pricing:
- Contact your congressional representatives to express your support for linking U.S. drug prices to international rates. Ask them to support Medicare drug price reforms.
- Support organizations advocating for drug pricing reform, such as:
- Share your story or concerns on social media or with advocacy groups to put public pressure on policymakers.
If You Oppose International Reference Pricing:
- Contact your congressional representatives to express concerns about how this policy could harm innovation or access to new medications.
- Support organizations focused on preserving pharmaceutical innovation, such as:
- Engage in public commentary if the policy enters a rulemaking phase via Regulations.gov.