The president is under pressure to deliver on campaign promises to reduce the high costs of prescription drugs.
In his speech, the president pinned the problem in part on price controls in other countries that he said "extort unreasonably low prices" from drug-makers, forcing Americans to pay more to "subsidise the enormous costs of research and development".
"That is unacceptable," he said.
However, experts say foreign pricing is not a major influence on US costs and changing it will not help Americans.
Paul Ginsburg, a professor of health policy at USC and the director of the USC-Brookings Schaeffer Initiative for Health Policy, said firms set prices to maximise profits and already have ample incentives to innovate.
"The notion that if other countries pay more for drugs that US consumers will pay less, that's just not true," said
Senator Chuck Schumer, Democrat from New York, said the president's blueprint offered "little more than window dressing".
"The idea that asking Germany to charge their citizens more for drugs will help Americans is a cop-out and the height of absurdity that nobody believes," he said.
However, experts say foreign pricing is not a major influence on US costs and changing it will not help Americans.
Paul Ginsburg, a professor of health policy at USC and the director of the USC-Brookings Schaeffer Initiative for Health Policy, said firms set prices to maximise profits and already have ample incentives to innovate.
"The notion that if other countries pay more for drugs that US consumers will pay less, that's just not true," said
"If they are able to get other countries to pay more, I don't believe it will have any effect on prices in the United States," he added. "It will only raise drug company profits."