Tariffs have become a hot-button issue lately, with the Trump Administration adding import costs to nearly every foreign-made product — including certain prescriptions in Nevada and the rest of the United States. The tariffs are designed to reduce our reliance on foreign countries like China and India, but critics aren’t quite sure it’ll work out that way. Here’s what you need to know about the tariffs and their impact on generic drugs.
Generic drug tariffs in the U.S.
Generic drugs account for about 90% of all the prescriptions in Nevada and the United States as a whole. And most of the ingredients in these more cost-effective generic drugs rely on one or two manufacturers, which makes the supply chain more fragile.
Unsurprisingly, India and China are two of the major suppliers for these all-important generic drug ingredients, and the upcoming tariffs will skyrocket prices on imports from these countries.
Potential tariff impacts on prescriptions in Nevada
The main goal of any tariff is to bolster domestic manufacturing. However, American generic drug manufacturers already face low profit margins and intense competition, meaning they may struggle to absorb the costs or keep up. All these increased costs will ultimately land on the consumer, increasing prices for generic drugs.
Not only could generic drugs become more expensive, but they may be harder to find, too. The U.S. currently faces 270 active drug shortages, especially with antibiotics. These tariffs could force some manufacturers to stop supplying the U.S. market, making shortages even worse. Additional shortages may delay patients from filling prescriptions in Nevada at local pharmacies.
Healthcare industry reaction on tariffs
Many experts in the industry argue that these proposed tariffs won’t, in fact, lead to more domestic drug manufacturing because of the complexity of the pharmaceutical supply chain. It’s not just plastic and metal and gizmos coming from China and India; it’s complicated mixtures and ingredients sourced from all over the world coming from only a handful of producers. It’s not something other companies can easily break into.
Instead, some experts predict the opposite: more shortages and delayed foreign investment in the United States. And others take their predictions even farther, stating that the tariffs could actually increase U.S. dependence on China and stall American drug manufacturing.
The Trump Administration has launched a formal investigation into pharmaceutical imports based on national security concerns. A decision could come within the next 270 days. However, the tariffs are expected to be announced within the next month or two.
Be prepared with the right prescriptions in Nevada for your needs
With the seemingly uncertain cost and availability of prescriptions in Nevada following the tariffs, now is a good time to make sure you have the right drug plan to suit your needs. At Health Benefits Associates, we keep up with the ever-changing healthcare field to provide you the best drug and healthcare coverage available.
If you or someone you know needs assistance checking your drug coverage, please contact one of our local advisors at 775-828-1216 to set up an appointment. We’ll walk you through the options to help you find the perfect coverage for your needs.