UK considers raising NICE drug threshold amid US tariff pressure

The UK government is weighing changes to how the National Health Service (NHS) assesses the cost-effectiveness of medicines, in a move that could raise drug prices. Reports suggest ministers are considering increasing the threshold used by the National Institute for Health and Care Excellence (NICE) by 25%.

According to media briefings, the proposal was shared with the Trump administration this week in an attempt to head off threatened US tariffs. President Trump has long argued that the UK underpays for medicines, disadvantaging American companies. UK science minister Patrick Vallance has also acknowledged that higher prices may be unavoidable.

At present, the NICE recommends NHS reimbursement if a treatment costs less than £20,000 ($26,798) to £30,000 per quality-adjusted life year (QALY). The Times reported that a new range of £25,000 to £35,000 is under review, alongside options to adjust NICE’s discount rate to better reflect long-term health benefits.