Trump Releases Plan to Slash Drug Prices, Confront ‘Global Freeloading’

President Trump announced a new initiative aimed at addressing “global freeloading” and cutting U.S. drug prices.

“We’re taking aim at the global freeloading that forces American consumers to subsidize lower prices in foreign countries through higher prices in our country,” he said.

HHS also issued a notice of proposed rulemaking that would implement the plan. Specifically, it looks to reduce Medicare payments for certain physician-administered Part B drugs and is known as the “International Pricing Index.” The model, which is based on a “composite of international prices,” would also let private vendors negotiate prices and compete for business from hospitals and doctors.