Mr. Trump is proposing to use prices in 14 other countries as a benchmark or guide in deciding what Medicare would pay. Many peg their payments to drug prices in other countries, a practice known as reference pricing or international benchmarking. It is true that the government does not negotiate with drug manufacturers to determine the prices paid for drugs in Part B of Medicare. These price concessions, generally treated as trade secrets, may knock 15 to 35 percent off the list price of a drug. The problem for Medicare and for consumers is that, for some drugs, manufacturers do not give substantial discounts.

Source: New York Times December 16, 2018 21:38 UTC