I sure hope Phara will be exempt from tariffs. The fall out will not just be drug costs (and thus people not taking what they need so higher medical expenses because of not taking drugs) but shortages of meds that are desperately needed so people die unnecessarily or get sicker. Not to mention many generics may vanish if they can't raise prices to absorb the tariffs. And then likely there will be changes to the formularies (tier, taken off it...). I sure hope they are not enacted.
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From an unusual source: The Lancet (medical journal; I don't have access to the full article, rather this is just the abstract). Published 4/25/25
"Proposed tariffs on pharmaceuticals cause concerns about increased drug prices and drug shortages in the USA. The USA appeared to move closer to imposing tariffs on pharmaceuticals after filing a federal notice on April 14, 2025, announcing an investigation into whether medicine and active ingredient imports threaten national security."
From an unusual source: The Lancet (medical journal; I don't have access to the full article, rather this is just the abstract). Published 4/25/25
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"If a company were to raise the price too high, health plans and pharmacy benefit managers may restrict people from using it, because they don't want to pay. Additionally, until current contracts are renegotiated, drug companies and health plans are locked into a reimbursement rate.
A more expensive pharmaceuticals market also could mean higher health insurance costs.
A persistent concern among advocates and stakeholders is that tariffs will price generic manufacturers out of the market. Generics make up about 90 percent of the medicines prescribed in the country, and the industry's operating margins are razor-thin. Some manufacturers will attempt to pass along the increased costs stemming from tariffs, but many could decide to halt production, leading to shortages."
https://thehill.com/policy/healthcare/5259496-trump-pharmaceutical-tariffs-threat/
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As D's are allowed to change their formularies during the insurance year I'd imagine, if the tariffs are enacted, some will move many/some drugs into higher tiers and/or remove them from the formulary if tariffs are enacted. Of course with the $2000 cap the cost will only be borne by those who wouldn't have otherwise hit the cap anyway and the insurance companies. If this happens I don't even want to think about the premiums for D next year, formulary shrinkage, and if this becomes expensive enough, premiums on some MAPD's and/or much smaller formularies.
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From an unusual source: The Lancet (medical journal; I don't have access to the full article, rather this is just the abstract). Published 4/25/25
"Proposed tariffs on pharmaceuticals cause concerns about increased drug prices and drug shortages in the USA. The USA appeared to move closer to imposing tariffs on pharmaceuticals after filing a federal notice on April 14, 2025, announcing an investigation into whether medicine and active ingredient imports threaten national security."
From an unusual source: The Lancet (medical journal; I don't have access to the full article, rather this is just the abstract). Published 4/25/25
========
"If a company were to raise the price too high, health plans and pharmacy benefit managers may restrict people from using it, because they don't want to pay. Additionally, until current contracts are renegotiated, drug companies and health plans are locked into a reimbursement rate.
A more expensive pharmaceuticals market also could mean higher health insurance costs.
A persistent concern among advocates and stakeholders is that tariffs will price generic manufacturers out of the market. Generics make up about 90 percent of the medicines prescribed in the country, and the industry's operating margins are razor-thin. Some manufacturers will attempt to pass along the increased costs stemming from tariffs, but many could decide to halt production, leading to shortages."
https://thehill.com/policy/healthcare/5259496-trump-pharmaceutical-tariffs-threat/
=========
As D's are allowed to change their formularies during the insurance year I'd imagine, if the tariffs are enacted, some will move many/some drugs into higher tiers and/or remove them from the formulary if tariffs are enacted. Of course with the $2000 cap the cost will only be borne by those who wouldn't have otherwise hit the cap anyway and the insurance companies. If this happens I don't even want to think about the premiums for D next year, formulary shrinkage, and if this becomes expensive enough, premiums on some MAPD's and/or much smaller formularies.
