Trump Rx website to provide medicines at lowest rates in US than any wealthy country; What it means for Americans?

New Delhi: The Trump administration is set to launch a new government website called ‘Trump Rx’ this month. Through this platform, patients will be able to buy medicines directly from pharmaceutical companies at lower prices. The administration claims that this initiative will reduce the cost of medicines for Americans by up to 800%.

Most Favoured Nation agreements

According to a report by American radio station NPR, the Trump administration has made agreements with 16 major pharmaceutical companies since September last year. These agreements have been called ‘Most Favoured Nation (MFN)’ deals. In return, the pharmaceutical companies will receive a 3-year exemption from tariffs on imported medicines.

This plan is considered to be linked to election promises and the ‘America First’ health policy. Trump says that other wealthy countries buy medicines made in America at lower prices, while Americans have to pay three times more for them. This programme will ensure that pharmaceutical companies sell medicines at the same prices as in other countries.

American companies to sell medicines at lower prices

American companies spend billions of dollars on research, testing, and manufacturing of medicines. These medicines are sold worldwide. They are very expensive in the US, while the same medicines are much cheaper in wealthy countries like Europe, Canada, and Japan.

This is because the governments of those countries demand lower prices for medicines and threaten to stop deals if their demands are not met. Fearing the loss of market share, companies provide medicines at lower prices.

‘New medicines are developed with the money of the American people’

Trump believes that new medicines are developed with the money of the American people. Other countries take advantage of this by paying less. According to Trump, they are getting a ‘free ride’ on America’s hard work.

Therefore, in this MFN program, it has been decided that the price of medicines in America will now be the lowest available in any wealthy country. Companies have been told to give America the same cheap deals. This will also mean higher prices for foreign countries, as seen in the agreement with Britain, where the price of new drugs was increased by 25%. American patients will get cheaper medicines, the extra money earned by the companies will return to the US, and domestic drug manufacturing will increase.