Military Strategy of the 20th Century Exposes Flaw in Trump’s Drug Pricing Plan

Tying U.S. drug prices to foreign systems may save money now but weaken the incentives that produce tomorrow’s breakthrough treatments.
One of the most influential military strategists of the 20th century, U.S. Air Force Col. John Boyd, developed a decision-making process known as the OODA loop: observe, orient, decide, act.
His model emphasized a simple but powerful principle: Move quickly, but only after understanding the strategic environment.
Nations that lead biotechnology will enjoy not only economic advantages but also strategic leverage during future global crises. China understands this.
The most important step is often “orient.” It requires leaders to look beyond the immediate problem, understand the broader consequences of their actions, and anticipate unintended outcomes. When leaders skip that step, they may solve today’s problem while creating a much larger one tomorrow.
President Donald Trump’s recent effort to reduce prescription drug prices illustrates that challenge.
One of the administration’s most significant health care initiatives is the adoption of a most-favored-nation pricing model. Under this policy, the United States would tie the prices of certain prescription drugs to the lower prices paid by selected foreign countries.