WASHINGTON — The pharmaceutical and biotech industries are pushing back against two Trump administration proposals that would test plans to lower drug prices in Medicare by aligning them with the prices paid in other rich countries.
Their comments preview arguments that they might use in court against the Medicare pilot programs, which would be mandatory and run for five years. It’s too soon for drugmakers to mount legal challenges, because the pilots are still in the proposal phase, and drugmakers would have to wait until they’re finalized to file lawsuits.
The Medicare pilot programs are part of President Trump’s effort to get drugmakers to lower prices in the United States to levels charged in other rich countries, a policy generally referred to as most-favored nation. The Global Benchmark for Efficient Drug Pricing (GLOBE) Model would apply to physician-administered drugs in Medicare’s Part B. The Guarding U.S. Medicare Against Rising Drug Costs (GUARD) Model would apply to Part D retail drugs. The government estimates that, together, the models would reduce spending by $27 billion over the five years they’re in operation.
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