Why do Americans pay much more to the prescribed medications

President Donald Trump’s offer to reduce medicinal medicines has recently sparked a hot debate about the high costs paid by American patients.

The White House leader signed an executive order Reduced drug costs By linking the prices of some medicines in the United States to much less than the drugs abroad.

Trump said this step, which revives and expands a controversial policy from his first term known as the “most preferred country” policy, aims to raise “fairness to America” ​​and reduce prices by 59 % or more.

The United States is constantly pushing more in the world for many prescribed medications.

2024 a report Rand Corporation found that the prices of drugs in the United States were almost three times higher than 33 other high income countries.

This is largely due to the highly complex, and the lack of national pricing.

Prayers in the United States are generally determined by pharmaceutical companies and negotiating them by private insurance companies. This contradicts many other countries, for example in Europe, where governments are negotiating directly with pharmaceutical companies to improve what the state -funded health systems pay.

UAE insurance companies usually depend on brokers known as the Pharmacy Advanced Managers (PBMS) to negotiate costs, because they tend to be greater and have greater price strength. However, they often do this with limited transparency and can be motivated by high -price drugs.

Meanwhile, drug makers, for their part, are defending the US highest costs by saying that they are helping to finance critical research and development – which Trump has long criticized to impose an unfair burden on American consumers.

“The Americans are paying more drugs more than Europeans,” Emily Field, head of European pharmaceutical research at Barclays, told CNBC’s Squawk Europe on Tuesday.

“Trump does not like it (they get a bad deal.”

However, Field pointed out that although consumers in the United States usually pay for branded medications, the image is far from a clear reduction.

She said: “Although the brand brand market for USMaceuticals is very expensive and very complex with a little transparency of the price, when it leaves a step back, there are parts of the American system amazingly, very effectively and good at cost reduction costs,” she said.

Unpoplated general drugs represent 90 % of the sizes of prescriptions in the United States compared to 41 % on average in other developed countries, according to Rand. These medications tend to be cheaper for us for patients, too, in about two -thirds of the cost paid by other countries.

The plans are considered to affect the famous pharmaceutical companies such as weight loss drug makers Novo Nordsk and Eli Lily.

However, Pharma’s shares have recovered from losses earlier this week, as measures were less severe than expected and are likely to face legal challenges. Similar moves were banned by Trump during the duration of the fixed by the courts.

“We expect the implementation of the MFN (the most preferred nation) legislation, as Trump cited the introduction of an official bill where we believe that the industry has more ways it opposes, as the analyst at UBS Trung Huynh wrote in the Monday note.

“The pricing will remain hanging in our sector, but we see the tone of President Trump relatively positive for this industry.”

However, Field noticed that one of the scale of the arrangement, which aims to restrict the role of PBMS for the private sector, can eventually go to reduce American costs.

On Monday, President Trump wrote in a social position: “We will cut the mediators and facilitate the direct sale of drugs at the most price of the nation,” President Trump wrote on Monday in a social position.

The efforts made to link PBMS have gained strength in recent years, as it faced regulatory pressure from the Federal Trade Committee. However, despite support from the two parties, legislators have so far struggled to pass any changes in Congress.

The government’s health department will establish a mechanism for patients to buy more medicines directly from manufacturers, according to the executive order.

“There is a growing effort to make the wicked pharmaceutical managers (PBMS),” said Field.

“I think you will likely see a growing dialogue that is wondering about the value that PBMS adds to the system and they really prefer the costs rather than save it to users, as they claim to do.”