Latest news with #pricecontrol
Fox News
6 days ago
- Health
- Fox News
Trump's quest to reduce drug prices is heating up. But will he be able to do it?
President Donald Trump is ramping up the heat on pharmaceutical companies, urging them in letters sent Thursday to cut down drug prices in accordance with an executive order he signed in May. But Trump has limited authority to actually force drug companies to adjust prices, according to experts, and his effort equates to price control. As a result, utilizing public pressure through these letters may be one tool he's employing to get companies to comply, according to Benedic Ippolito, a senior fellow in economic policy studies at the conservative-leaning American Enterprise Institute think tank. "One of the big questions has been just how much can the administration realistically pressure these drugmakers to do something that is at least nominally voluntary," Ippolito told Fox News Digital Monday. Drug prices have dramatically climbed in recent years. Prescription drug prices increased more than 15% from January 2022 and January 2023, reaching an average of $590 per drug product, according to the Department of Health and Human Services. Of the 4,200 prescription drugs included on that list, 46% of the price increases exceeded the rate of inflation. Trump's original executive order signed in May directs the Department of Health and Human Services to establish price targets for pharmaceutical manufacturers. Failure to comply will prompt the Justice Department and the Federal Trade Commission to "undertake enforcement action against any anti-competitive practices," along with other consequences. Additionally, Trump introduced plans to launch "most favored nations drug pricing." "The principle is simple – whatever the lowest price paid for a drug in other developed countries, that is the price that Americans will pay," Trump said at the White House in May upon signing the order. "Some prescription drug and pharmaceutical prices will be reduced almost immediately by 50 to 80 to 90%." "We're going to equalize," Trump said. "We're all going to pay the same. We're going to pay what Europe pays." However, Ippolito said Trump's ability to actually lower the cost of drugs will be dependent on the administration's ability to present drug companies with a "credible threat" to pressure them into submission. "The administration, realistically, does not have a ton of leverage to force drugmakers to change their behavior," Ippolito said. "I think that's the practical reality." Additionally, Ippolito said Congress has greater authority to establish new laws that would have "profound implications for drug markets." But Trump's views on the issue may not attract support from even members of his own party, he said. "Congressional Republicans are generally more hesitant to do bold things on drug pricing, and the administration, the president, seems to have quite different views," Ippolito said. "And so I think he probably looks at Congress and sees some people who may not share his vision on this particular issue." Michael Cannon, director of health policy studies at the Washington-based libertarian-leaning Cato Institute think tank, said the effort amounts to price controls since the executive order isn't limited to government programs – it applies to the free market and private sector as well. "This is government price controls," Cannon told Fox News Digital Monday. "It is even worse than government price controls, because it is government price controls without Congress' permission." Price control occurs when the government steps in to impose limits on how much one can charge for various goods or services in the free market. While price controls may lower costs for some consumers, they have largely been ineffective in American history. For example, President Richard Nixon implemented price controls in the 1970s in an attempt to fix wages and other costs – which backfired and resulted in the gas crisis and other shortages across the country. Meanwhile, Cannon said there are plenty of other avenues that could lead to reduced drug prices, including reforms to Medicaid, Medicare and the tax code. But all those options would involve the legislative branch. "Those things require Congress, for the most part, and it's hard to get anything through Congress that would reduce wasteful spending in the health sector," Cannon said. The White House sent letters to the following drug companies Thursday, advocating for lower drug prices: AbbVie, Amgen, AstraZeneca, Boehringer Ingelheim, Bristol Myers Squibb, Eli Lilly, EMD Serono, Genentech, Gilead, GSK, Johnson & Johnson, Merck, Novartis, Novo Nordisk, Pfizer, Regeneron and Sanofi.
Malay Mail
03-08-2025
- Business
- Malay Mail
Drug price transparency kicks in at private clinics and pharmacies, full enforcement by January 2026
KUALA LUMPUR, Aug 3 — The Ministry of Health (MOH) and the Ministry of Domestic Trade and Cost of Living (KPDN) are implementing the drug price display initiative at private health facilities and community pharmacies in stages starting August 1. According to a joint statement by both ministries, the initiative, which was implemented under the Price Control and Anti-Profiteering (Price Marking of Medicines) Order 2025 [P.U.(A) 141/2025] under the Price Control and Anti-Profiteering Act 2011, began on May 1. The statement said the educational enforcement approach was implemented in the first three months ending July 31. 'During the period, 842 facilities consisting of medical clinics, dental clinics and private hospitals as well as community pharmacies were inspected and the majority of them have implemented this initiative with 57 per cent of them complying with the requirements for satisfactory drug price display,' according to the statement. In this regard, enforcement will continue in stages from August 1 through educational approach inspections and advocacy for two months until September 30 and a reminder letter may be issued in the event of non-compliance. According to the statement, starting October 1, compounds would be issued for repeat offences before full enforcement on January 1, 2026. MOH and KPDN also took note of the judicial review action filed in the High Court by seven organisations representing medical and dental practitioners and one private medical practitioner regarding the validity of Order PU (A) 141/2025. 'However, until this statement is issued, there is no court order directing the suspension of the implementation or enforcement of this order. Therefore, Order P.U.(A) 141/2025 remains valid and in force,' according to the statement. MOH and KPDN also expressed their commitment to implement the initiative in an inclusive, phased and prudent manner to ensure that its benefits are enjoyed by consumers and contribute to increasing transparency, accountability and trust in the country's health system. — Bernama
Malay Mail
13-07-2025
- Business
- Malay Mail
Govt ready to act on unjustified price hikes after SST revision, says deputy domestic trade minister
KUALA LUMPUR, July 13 — Authorities will step up efforts to monitor the prices of basic necessities, including food at eateries, following the Sales and Service Tax (SST) revision, Deputy Domestic Trade and Cost of Living Minister Datuk Fuziah Salleh said. According to The Star, Fuziah said the ministry is ready to take action against food operators who increase prices unnecessarily due to the SST adjustments. 'We have already launched Ops Kesan 4.0,' she said. 'This is to protect consumers by detecting price movements and any attempts to exploit the SST adjustments. We will continue to monitor them,' she said. She added that the ministry is prepared to receive complaints from the public. 'We hope all parties can play their roles and we will look into all the complaints,' she said. The Domestic Trade and Cost of Living Ministry has begun nationwide enforcement operations under Ops Kesan 4.0 to curb unjustified price increases and profiteering linked to the SST revision, which came into effect on July 1. Minister Datuk Armizan Ali said on July 8 that the enforcement will be guided by four key elements, starting with the scrutiny of goods and services listed under the revised SST scope. He said the second element involves ensuring registered businesses exceeding the SST threshold register with the Customs Department. Other factors include examining pricing margins to determine whether they reflect profiteering in violation of the Price Control and Anti-Profiteering Act 2011. 'Businesses are advised to consider all four aspects before making any price or service fee adjustments,' Armizan said. He also urged businesses to consult the Customs Department and the Finance Ministry for policy and compliance clarification while seeking guidance from the ministry's Enforcement Division for matters involving profiteering indicators.
Zawya
16-06-2025
- Business
- Zawya
Egypt confirms over 6 months of strategic supply for basic commodities amid regional tensions
Arab Finance: Egypt's Minister of Supply and Internal Trade Sherif Farouk affirmed the full availability of all basic commodities in the local market, with a strategic stock sufficient for more than six months, as per a statement. Farouk said the supply situation remains stable despite ongoing regional instablities and their potential impact on global markets. He stressed that proactive measures have been taken in coordination with relevant authorities to ensure the continued availability of essential goods at reasonable prices. The minister also noted that the government is maintaining regular field inspections to prevent any monopolistic practices or price manipulation. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Times of Oman
15-06-2025
- Business
- Times of Oman
Telecommunications Regulatory Authority issues bylaw on regulating retail tariffs
Muscat: The Telecommunications Regulatory Authority (TRA) has issued a bylaw on price control titled 'Retail Tariff Regulation' that repeals the regulation issued vide Decision No. 27/2016. The new bylaw comprises several regulatory provisions, including general provisions on retail tariffs for telecommunications services, special provisions for tenders offered to commercial beneficiaries and government institutions, and additional regulatory provisions on monitoring pricing practices that may exceed certain levels. The regulation targets all licensees who provide public telecommunications services in retail markets. The new bylaw seeks to keep pace with regional and international updates in the telecommunications sector. It also seeks to promote fair competition and ensure transparency in the retail telecommunications services market, while at the same time safeguarding the rights and choices of beneficiaries.
