Senator Ruben Gallego (D-AZ) is demanding answers after President Donald Trump reached an agreement with Pfizer on a "Most Favored Nation" program.
The new system builds on an executive order that President Trump signed in May that implements price controls on pharmaceuticals.
Earlier this week, he reached an agreement with Pfizer which states Medicaid programs can access drugs at prices equivalent to the lowest paid in other developed countries ("most favored nation").
Additionally, Pfizer will be required to repatriate increased foreign revenue on existing products and offer medicines at a deep discount off the list price when selling directly to American patients, who pay out-of-pocket under this system via a website called TrumpRx.
However, Sen. Gallego claims that the exact nature of the agreement remains murky in a recent letter to Pfizer CEO Dr. Albert Bourla.
"While the White House touted the agreement as a win for patients, neither the Administration nor Pfizer has disclosed which drugs are covered, what prices have been agreed to, or how patients will benefit," Sen. Gallego questioned in the letter. "A press release from Pfizer stated that the 'specific terms of the agreement remain confidential,' which raises serious concerns about this arrangement," he noted.
As a result, the Arizona Senator asked Dr. Bourla to explain which countries are used when calculating MFN prices and how, such as list prices, net prices after rebates and discounts, or some other metric, and which drugs are specifically offered under this system.
"Given that many insured patients already have lower copays or coinsurance than the proposed TrumpRx discounts, it is unclear how this platform would provide meaningful relief," Gallego concluded. "In fact, it may increase costs for patients."
In August, the Arizona Senator called for action to prevent Medicare Part D prescription premium hikes, expressing that "many Medicare beneficiaries are on fixed incomes, and even modest increases in premiums may force them to make difficult decisions between paying for medications and covering other basic living expenses."
