President Trump has signed an executive order he hopes will encourage pharmaceutical companies to lower drug prices for the American healthcare system. One expert says it's not that simple.
University of Miami School of Business Health Sector Director, Dr. Steven Ullmann says other countries are single payer nations simplifying drug price negotiations.
He says, "There's no consensus here." America does not have universal healthcare, so private insurers negotiate prices individually.
Trump also wants to cut out "the middleman" known as pharmacy benefit managers, who inflate drug prices. Dr. Ullmann says Congress will have to take a look at that issue.
"It's the system." Dr. Ullmann says, "The way PDM's make more money is by basically pushing more expensive drugs."
Dr. Ullmann also says an executive order can steer Medicare and Medicaid payments, but it cannot force manufacturers to cut the list price they charge private insurers without an act of Congress.
Trump vows that the U.S. will no longer subsidize the healthcare of other countries.