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July 18, 2019

President Trump announced the administration’s intention to release an executive order based on a “favored nations” clause. This approach suggests the U.S. would pay for pharmaceuticals at the best terms other countries offer to other buyers. The EO could ask Congress to enact a law prescribing that Medicare rates equal the lowest amount paid by other countries, or it could ask trade authorities to negotiate new pharmaceutical trade deals.

According to White House officials, Trump is referencing the earlier proposed Medicare Part B rule to link some drug prices to an international pricing index. That rule is currently sitting with OMB.

Our government affairs and legal teams will continue to provide updates on this potential EO.