[Comment] The US experiments with international reference pricing for prescription drugs

AI Summary

The commentary discusses US efforts to use international reference pricing to lower prescription drug costs, comparing Medicare drug prices with those in other high-income countries. It describes the Trump administration’s initiative to benchmark Medicare Part B prices through the Centers for Medicare and Medicaid Innovation.

The USA pays substantially more for the same branded drug compared with other high-income nations, with estimates suggesting the USA pays three to five times the price compared with most European countries.1 For many, including the Trump administration, these higher prices represent an unfairness in the global pharmaceutical market. In his first term, US President Donald Trump directed the Centers for Medicare and Medicaid Innovation (CMMI) to benchmark Medicare part B drug prices to international prices as a form of international reference pricing.