The Challenges and Risks of Adopting Foreign Price Controls

The Trump Administration is moving forward with a plan to import foreign price controls into Medicare. Under the proposed International Pricing Index (IPI) model, the federal government would move away from a long-standing market-based reimbursement system to one that is tied to prices paid in countries with single-payer health care systems.
Here’s how the current system works. Under Medicare Part B, the government reimburses payers for medicines that are administered directly by providers