The debate around prescription drug prices — including the Trump administration's proposal tying some Medicare drug prices to what other countries pay — raises an important question: How do other countries decide what to pay for drugs?

Why it matters: A recent World Health Organization report on cancer drugs, which found that cancer drugs' high cost is largely unjustified by development costs, detailed a handful of methods other countries use.

  • Cost-based pricing: A price is calculated by totaling the costs of producing the drug and then adding a profit margin.
  • Value-based pricing: A price is determined by the worth individuals and society place on the medicine. Measures of value can include need for the medicine, clinical evidence, economic and financial impact and innovativeness.
  • Reference pricing: This method uses benchmark prices to determine the price of a new drug, either from other countries or from a group of comparable medicines.
  • Tendering: This is a bidding process where the winning supplier is awarded a contract.
  • Negotiation: Often used in combination with the other pricing approaches to reach a deal between payers and suppliers.
  • Some countries also regulate markups along the drug supply and distribution chains.

The bottom line: All of these methods are complicated and have their own drawbacks, but the question of how to regulate drug prices has been asked and answered many times before.

Go deeper: U.S. drug prices don't translate to better health

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Ben Sasse emerges as GOP Trump critic ahead of November

Sen. Ben Sasse walks to the Senate from the subway to vote in June. Photo: Bill Clark/CQ-Roll Call via Getty Images

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Why it matters: Trump increasingly looks — to business and to fellow Republicans — like a loser in November. So they're more likely to create distance to save their own skins. Sasse also won his May primary, further freeing him.

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Why it matters: Many state and local governments have had their budgets devastated by the economic impacts of the coronavirus, which have caused expenses to soar and revenues to plunge.

Kudlow says he regrets claiming Trump couldn't use executive order for unemployment

White House economic adviser Larry Kudlow said on CNN's "State of the Union" Sunday that he regrets suggesting this week that unemployment benefits can only be extended by Congress.

Why it matters: President Trump's decision to bypass Congress to sign four executive actions, including one that provides $400 per week in extra unemployment benefits, has prompted outcry from Democrats and even some Republicans who believe he is overstepping his constitutional authority.