Trump announced new measures to reduce drug prices

US President Donald Trump has unveiled two new drug pricing rules. About whom they touch, tells CNN.

Photo: Shutterstock

On Friday, November 20, US President Donald Trump unveiled two regulations aimed at lowering drug prices, prompting threats of litigation from the pharmaceutical industry and condemnation from Democrats.

If the two measures survive legal challenges, they would radically change the U.S. drug pricing system. One of the rules requires the Medicare program to compare prices for prescription drugs with prices for them in other developed countries. Another would effectively prohibit drug makers from providing rebates to pharmacy benefit managers and insurers, a sweeping change in the way many drugs are priced and paid for under the Medicare and Medicaid programs. Instead, pharmaceutical companies would be asked to pass the discounts directly to patients at the pharmacy.

During a 22-minute press conference, Trump unveiled a detailed list of drug price-setting measures that his administration has taken over the four years of his presidency. Many of them are still at the proposal stage, have been suspended by the court or have had little impact.

Medicare reimbursement based on drug prices in other countries

The rules stem from a series of executive orders issued by Trump in July and September.

One rule allows the US to benefit from rebates negotiated in other countries after Congress banned Medicare from negotiating with drug manufacturers. According to Trump's proposal, drug prices in the United States should not be higher than in other developed countries of the world. Other countries tend to pay much less for drugs, in large part because their governments often determine the cost of drugs, which runs counter to Republicans' commitment to the free market system.

While Trump criticized socialist health systems in other countries and attacked his Democratic rivals for trying to implement such a system in the United States, he noted the benefits of linking US prices with lower costs in other countries.

The rule, which takes effect in early 2021, will last for 7 years and could save patients $ 28 billion.

On the subject: Trump may revoke US citizenship by birth before leaving office

Sending discounts to consumers

The second rule would effectively prohibit drug makers from providing rebates to pharmacy benefit managers and insurers, a sweeping change in the way many drugs are priced and paid for in the Medicare and Medicaid programs. Instead, pharmaceutical companies would be asked to pass the discounts directly to patients at the pharmacy.

On Friday, November 20, the Department of Health announced that patients could save almost 30%. This will impact patients whose out-of-pocket costs are tied to the list price of a drug—for example, those who must meet a deductible, use a drug that is not covered by insurance, or pay coinsurance that is tied to the list price. Those with high drug costs will benefit the most.

However, the Trump administration scrapped the rule last year after it was found to increase spending for the elderly and the federal government.

The proposed rule is expected to increase Medicare premiums while saving money for only the 30% of Medicare Part D members who spend heavily on drugs, according to administration estimates for 2019. It could also cost the federal government $ 177 billion over 10 years, according to the Congressional Budget Office. Trump's July executive order called for the rule to be enacted, but only if it does not increase costs. The head of the health department, Alex Azar, said there is a wide range of estimates, some of which indicate that the rule will lead to savings.

The rule will take effect at the beginning of 2022.

You may be interested in: top New York news, stories of our immigrants and helpful tips about life in the Big Apple - read it all on ForumDaily New York.

Immediate industrial opposition

Pharmaceutical industry groups immediately criticized the rules, promising to consider all options for ending the measures. The PhRMA, a lobbying group for drug manufacturers, said the first rule would jeopardize medical innovation in the United States and harm patients.

“This defies logic. The administration is blindly pursuing policies that give foreign governments the power to determine the cost of drugs in the United States,” said PhRMA CEO Stephen J. Ubl. “History has proven that when governments take unilateral price-fixing measures, it prevents patients from accessing treatment, preventing investment in new medicines, and threatening jobs and economic growth.”

Industry organizations representing insurers and pharmacy benefit managers have rejected the rebate rule.

“The decision to move forward with the previously repealed rebate rule will dramatically increase Medicare Part D beneficiaries' premiums and taxpayer costs,” said J.C. Scott, CEO of the Pharmaceutical Care Management Association. “We will explore all legal options to prevent the rule from going into effect and destabilizing the Medicare Part D program upon which millions of beneficiaries rely.”

Trump was also criticized by the Democratic leaders in the House of Representatives, who put forward their own plan to reduce the price of drugs.

Read also on ForumDaily:

Can the electors vote for Trump, despite the popular vote?

The United States officially withdrew from the Open Skies Treaty: what does it mean

Putin explained why he does not congratulate Biden on winning the election

Why the weirdest US laws were passed

Do you want more important and interesting news about life in the USA and immigration to America? — support us donate! Also subscribe to our page Facebook. Select the “Priority in display” option and read us first. Also, don't forget to subscribe to our РєР ° РЅР ° Р »РІ Telegram  and Instagram- there is a lot of interesting things there. And join thousands of readers ForumDaily New York — there you will find a lot of interesting and positive information about life in the metropolis.