What potential tariffs in pharma could do

Downstream costs, both immediate and long-term, are surmised in a recent paper.

A recent article in the Journal of Managed Care + Specialty Pharmacy (JMCP), “The consequences of pharmaceutical tariffs in the United States,” listed six specific cases related to potential tariff impacts on imported branded, generic, and biosimilar pharmaceutical products. Here, Access Insider summarizes those that directly impact the drug pricing landscape.

According to the authors, drug manufacturers would most likely absorb raised costs; however, economic realities suggest hospitals, insurers, and patients would also be negatively impacted.

While pharma has limited ability to affect Medicare pricing, it could renegotiate private insurance market contracts, resulting in higher premiums and restructured benefits packages.

Generic medications, representing 90% of all prescriptions, could also be subject to price increases, affecting the flow through wholesalers to pharmacies. The reimbursement structure creates a lag where pharmacies—especially independent ones—face financial pressure before rates adjust, while pharmacy benefit managers temporarily profit from this misalignment.

Patients would experience immediate higher costs at the pharmacy counter, say the authors, potentially compromising medication adherence and treatment plans. Long-term consequences include rising insurance premiums and increased taxes for public health programs.