The taxpayer-funded NHS could have to spend billions of pounds more on medicine as part of plans to prevent pharmaceutical firms from quitting the UK amid fears over US tariffs. Donald Trump wants to bring medicine prices down in the US and isthreatening to slap tariffs of up to 100% on pharmaceutical imports.
In an attempt to keep drug companies in Britain, Sir Keir Starmer is believed to be prepared to overhaul value for money rules for the NHS and offer the pharmaceutical industry more cash. The Government has confirmed it is in “advanced discussions” with the US to “secure the best outcome for the UK”. A focus of the plan to adjust NHS medicine prices is said to be raising the cost-effectiveness threshold used by England’s NHS spending watchdog by 25%.
According to POLITICO, the proposals were briefed to Washington officials earlier this week.
The National Institute for Health and Care Excellence (Nice) currently approves medicines that cost between £20,000-£30,000 per each year of good quality life they provide.
A new threshold of £25,000-£35,000 is one option being considered, The Times reports.
It would represent the first time the benchmark has ever been increased.
Nice assesses medicines based on several factors, including clinical effectiveness, cost effectiveness, and overall cost to the NHS.
Ministers are locked in a stand-off over how to cover the potential increased medicine costs, expected to be worth billions of pounds, according to The Times.
The NHS is said to be reluctant to use its budgets to cover the costs, while the Treasury is adamant there is no extra cash.
The Prime Minister’s business adviser Varun Chandra is reportedly spearheading the efforts to keep pharmaceutical giants in the UK.
America has the highest drug prices in the world, with President Trump understood to want more parity on pricing.
A Government spokesperson said: “The pharmaceutical sector and the innovative medicines it produces are critical to our NHS, our economy and the Plan for Change.
“Through our Life Sciences Sector Plan, we’ve committed to working with industry to accelerate growth in spending on innovative medicines compared to the previous decade.
“We’ve secured a landmark economic partnership with the US that includes working together on pharmaceutical exports from the UK whilst improving conditions for pharmaceutical companies here.
“We’re now in advanced discussions with the US administration to secure the best outcome for the UK, reflecting our strong relationship and the opportunities from close partnership with our pharmaceutical industry.”