PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Really Bad Medicine: Small Business Group Strongly Opposes Trump’s “Most Favored Nation” Drug Pricing Scheme

By at 14 September, 2020, 1:56 pm

NEWS

FOR IMMEDIATE RELEASE

Washington, D.C. –  Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan issued the following statement in response to President Trump’s “Most Favored Nation” Executive Order (EO), which was signed and released on September 13. The EO ties foreign prices – meaning foreign price controls – to Medicare Part B and Part D drug reimbursements:

“Many countries across the globe freeload off of U.S. innovation, and that is particularly the case with bio-pharmaceuticals. American innovators spend numerous years and billions of dollars developing pharmaceuticals and breakthrough treatments, and to peg these innovative medicines to foreign price controls is a huge problem for American innovation and our economy. The implementation of this ruinous policy model will have a significant impact on this critical industry, and for health consumers generally.

“Price controls have never worked, and to impose this restrictive policy on life-saving drugs and innovative medicines will undermine America’s strong leadership in this critical area. It is very disheartening to see the Administration embrace the tools of socialism rather than address the issue through trade agreements with countries that are ripping us off.  Fully opening markets to U.S. drugs, protecting the IP of these innovations, and negotiating to lift price controls will help our companies more fairly recoup their investments, which will lower drug prices for all.  Small pharmaceutical companies dominate this critical U.S. sector, and these entrepreneurial firms will be the hardest hit by ‘Most Favored Nation.’ Doing this in a pandemic is even worse. In the end, patients, innovation, and our economy will all suffer.”

Related Content:

Importing Price Controls is Unhealthy U.S. Policy, SBE Council statement, July 2020.

SBE Council Comments Filed to CMS on the Proposed International Pricing Index Model, December 2018.

SBE Council’s Statement on HHS’s Drug Importation Plan, August 2019.

Small Business Insider: Reminder During This COVID-19 Crisis – The Pharmaceutical Industry is Dominated by Small Businesses, April 2020.

Contact: Karen Kerrigan, kkerrigan@sbecouncil.org

SBE Council is nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For 25 years, SBE Council has worked on and advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth. Visit www.sbecouncil.org for additional information. Twitter: @SBECouncil

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