New US Medicare Pricing Policy Could Reshape Global Drug Markets

A new study in The Lancet reveals that the U.S. Medicare's "Most-Favored-Nation" pricing policy, which ties Medicare payments to prices in other high-income countries, could incentivize pharmaceutical manufacturers to raise prices or delay product launches globally. The research found that for approximately 75% of medicines studied, Medicare savings would exceed four times the drug's annual sales in the reference country, potentially compelling manufacturers to adjust their international pricing and launch strategies. This policy shift could have significant implications for medication availability and costs worldwide, including in Puerto Rico, where patients depend on affordable access to pharmaceutical treatments.