In late 2020, the then-President of the United States issued a series of directives aimed at lowering the cost of medications for American consumers. These directives, enacted through presidential authority, sought to address perceived inefficiencies and imbalances within the pharmaceutical market. The core objective was to reduce out-of-pocket expenses for individuals purchasing medications, particularly seniors and those with chronic conditions.
The significance of these actions lies in the potential for altering established pricing practices within the pharmaceutical industry. One proposed measure involved allowing the importation of certain drugs from other countries where prices are lower. Another focused on passing manufacturer rebates, typically received by pharmacy benefit managers (PBMs), directly to patients at the point of sale. Historically, these rebates have not always translated into reduced costs for consumers, leading to calls for greater transparency and price reductions. The impact of these directives was anticipated to be far-reaching, potentially affecting pharmaceutical company revenues, PBM operations, and patient access to medications.
