Does Trump's Drug Pricing Policy Affect Medicine Access in Canada? Evidence Is Mixed
Published
The United States government has pursued a drug pricing approach known as the most-favoured-nation (MFN) policy. The idea behind it is simple: American patients should not pay more for a medicine than people in other wealthy countries pay for the same drug. Under MFN deals, drug companies agree to lower their prices in the United States, which can mean charging higher prices in other countries.
This raises an important question for Canadians. Many Canadians buy prescription medicines at prices set by public and private insurance plans, and some depend on imported or lower-cost drugs. If drug makers raise their prices outside the United States, some observers worry that medicines could become more expensive or harder to get in Canada. Others argue that the effect may be limited, and that companies have many reasons for setting the prices they do.
So far, the evidence on this issue is mixed. Some reports suggest that companies may delay launching new medicines in some countries or change how they set prices. However, it is not yet clear how large or lasting these effects will be, or whether they will reach Canadian patients directly. Experts continue to study the policy, and the outcome may depend on how drug companies respond over time. For Canadian readers, the situation is worth watching as it develops.
Sources: The Globe and Mail
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