Yahoo Finance

Well, switching gears to DC, the Department of Health and Human Services is taking steps to implement President Trump's executive order aimed at lowering healthcare costs. Here at the latest is Yahoo Finance senior health reporter, Angelique Camlani. So, Angelique, what do we know?

So, we got a little bit of more insight out of the Health and Human Services Department outlining what they say will be negotiations. So, another round of negotiations for these pharma companies. Uh, they said that they're going to negotiate manufacturers to get the lowest price in an OECD country with GDP per capita of at least 60% of the US. And so, that's a guideline for sort of where they're looking at these lowest prices from. They will exclude drugs that have biosimilar or generic competition because those already are pretty low in the country. And they are planning to highlight the commitments they already have. So, that's a sign that some of these companies are already playing ball and already negotiating in good faith with the Health and Human Services Department. We do know that some companies have already said they are planning to, uh, bring forth some legal challenges to this. So, we'll try to we'll see who who pans out. In a statement, Robert Kennedy Jr., healthcare secretary, said, we expect pharmaceutical manufacturers to fulfill their commitment to lower prices for American patients, or we will take action to ensure they do. And that brings up some questions, um, that remain unanswered, which is what exactly does the Health Department have in terms of power to negotiate and force these manufacturers to provide lower prices, especially in the commercial market? Uh, one of the questions is what happens to the companies who don't, when will they have to commit, and what price exactly is being set? Is it the list price, out of pocket? You know, there's all of that, um, as part of the question. And let's not forget that this is part of the broader picture, which is, you know, the, uh, Trump administration looking at different levers to try and ensure lower drug prices. Health Department is one. FDA expanding importation from abroad is another. The DOJ and FTC are looking into anti-competitive practices. And we've also got the US trade representative and Commerce Department looking at other ways to bring legal action. So, it's a very multifaceted approach, and this is just the first glimpse we've had on what direction it is going.

Very interesting stuff, and we know healthcare costs continues to be top of mind for a lot of consumers. Angelique Camlani, thank you so much.