New policies targeting drug pricing

The Wall Street Journal reported on two new policies expected to be adopted by the current administration with the aim of lowering drug prices: limiting rebates that are paid to pharmacy benefit managers and indexing the price of some drugs in the US according to prices in other countries. Both of these policies appear to have some winners (payers such as Medicare, possibly also patients) and some losers (pharmacy benefit managers and pharmaceutical manufacturers). Backlash against rising drug prices in the current political and economic climate might give the administration enough cover that the losers will not have enough clout to stop these policies.

It is unclear whether the upcoming administration will uphold these policies, or perhaps enact more sweeping reforms. It is also unclear whether the stakeholders in these industries will find new ways of maintaining their profits.