This is the subject of one JMCP approach By Sean Sulivan, Jens Gruger, Adon Sullivan and Scott Ramese. Some excerpts:
Budget lab at Yale University estimated that 25% advertisement Velorm Tariff would “increase the cost of the drug” in the United States by an average of about $ 600 per year per year. “3 Tariffs can also cause disruption in the supply chain, increase the cost and limit the patient’s access to the necessary medicines, and can negatively affect research and innovation.
Pharmaceutical manufacturing is an international effort and will cost tariff supply chains.
Applying tariffs will disrupt the necessary raw materials, active drug materials, and movement of prepared drugs. In the near period, the disruption will increase the cost, the delay in treatment, and the reduction will be triggered, especially for important generic drugs with the supply of tenus, such as antibiotics, intravenous fluids, sterile injections (eg, epinephrine, heparin), and infected cancer therapies …
The article also discusses how tariffs will be particularly problematic for generic drugs and who will be the winner (PBM) and losers (pharmacies) with increased tariffs.
Generic manufacturers face tariffs, possibly invoicing challans for wholesale vendors and purchasing groups. This will translate high wholesale acquisition costs or average wholesale prices that face pharmacies. For generic, retail pharmacies are reimbursed by PBM based on maximum acceptable cost (MAC). Without this adjustment for Mac, wholesale acquisition costs or an increase in average wholesale prices will leave the pharmacy financially stressful, especially independent pharmacies deprived in PBM contracts. Winner? The PBM that buys and keeps any physical product will pocket the difference until Mac is adjusted. For cash-based generic plans like Mark Cuban Cost Plus Drugs, a razor-thin margin means that a large part of the increased prices will be passed to patients.
The article also notes that patients’ possibility will pay both out-of-pocket cost and premium along with high costs-from tariffs and by high production costs if manufacturing was re-shed in America.
The article also argues that international cooperation -compared to the discrete tariff and a better way forward. Surely I feel sensible.
