Trump Says Goal Of New Proposal Is To Lower Drug Prices
- Ruben Ruiz
President Donald Trump proposed what he called "revolutionary" changes to how his administration will approach drug pricing and reimbursement under Medicare Part B in a speech Thursday, including allowing Medicare to set prices of drugs based on what is paid in other countries. "The mark-up on Part B drugs appears to independently influence prescribing patterns", said a May policy paper from Memorial Sloan Kettering Cancer Center's Drug Pricing Lab.
Rather than "divine the value" of a drug, the proposal "respects the fact that pharma voluntarily agreed to sell drugs at discounts elsewhere and we're saying 'give us some of that, '" Azar said at a briefing with reporters after Trump's speech. HHS Secretary Alex Azar said on Twitter that some of the drugs cost four times as much in the United States.
"Same company. Same box".
- The plan would not apply to medicines people buy at the pharmacy, just ones administered in a doctor's office, as are many cancer medications and drugs for immune system problems.
- Don't expect immediate rollbacks.
Such a reaction was anticipated by the Trump administration, which has recently sought to show more action on its promises to take on rising drug prices.
Also, Trump's Justice Department is seeking to invalidate the health reform law's provisions governing pre-existing conditions as part of lawsuit being brought by 20 Republican states.
A number of health care-related announcements have been made by the White House ahead of next month's midterm elections.
Azar rejected the pharma industry's argument that the plan - which among other things would tie Part B drug payments partly to prices elsewhere in the world for the same products - would stifle innovation calling it "mathematically unbelievable". Instead, private vendors would negotiate with drug companies on their behalf and then bill the federal government.
Drugmakers are sure to push back, arguing it would be tantamount to adopting price controls.
In those countries, the government health systems directly negotiate with pharmaceutical makers over the price of their drugs. In his remarks Thursday, he combined that with a swipe at foreign trade practices, framing the Medicare proposal as a way to restore fairness for American healthcare consumers.
IBM set to acquire North Carolina-based Red Hat in $34B deal
IBM's Rometty added that most companies are now being held back in their cloud transformation due to closed platforms. IBM announced today that it will acquire open source firm Red Hat for approximately $34 billion in cash and debt.
Single winning ticket sold for $1.6 Billion Mega Millions jackpot
MA residents have the biggest taste for playing the odds, spending nearly $763 per year on lottery tickets, the study found. On average, that's $206.69 per person. "Business has been ridiculous especially on the lottery sales", said Abuhamdeh.
The Shale Boom Calmed Oil Markets, but for How Much Longer?
Financial markets have been hit hard by a range of worries, including the U.S. However, there is an important distinction when it comes to Saudi Arabia .
Nicholas Florko is a Washington correspondent for STAT, reporting on the the intersection of politics and health policy. "The 340B program prohibits many 340B hospitals from using a GPO", Testoni added. But that's "quite literally the opposite of what is being proposed".
Democratic leaders on Capitol Hill were dismissive.
Trump "wants the kind of discounts that are applied in Germany and the Netherlands, for the reference reimbursement prices to be applied in the USA", said Rodrigo Moreno-Serra, associate professor of global health economics at the University of York in England. "Seniors, who are hit the hardest, pick up the tab".
Matt Eyles, president and CEO of America's Health Insurance Plans, said: "Drug prices are out of control, and we commend the Administration for its continued commitment to reduce drug prices".
"The administration is imposing foreign price controls from countries with socialized health care systems that deny their citizens access and discourage innovation", PhRMA Chief Executive Stephen Ubl said in a statement.
HHS Secretary Alex Azar criticized a system in which other countries to pay significantly less for drugs than the USA government.
An HHS report issued just prior to Thursday's announcement compared prices of 27 Part B drugs in the us with those of 16 other wealthy countries and found that prices charged by drugmakers to wholesalers and distributors (known as "ex-manufacturer prices") in the USA were 1.8 times the average global ex-manufacturer price, in the first quarter of 2018. "If we paid the prices other nations pay, we'd bring the $1 billion down to $187 million dollars a year".
HHS says overall savings to Medicare would total $17.2 billion over five years. Beneficiaries would save an estimated $3.4 billion through lower cost-sharing. It could pay them a flat fee, instead of the current system of providing a percentage of the medication's cost.
In addition to trying to cut the base price of the drugs, the administration, through HHS, is proposing changing how doctors who deliver these drugs are paid.
The president in May also claimed drug companies would be announcing "massive" voluntary price cuts.
Yet Mr. Azar disagreed, saying Big Pharma is "never going to walk away" from the huge USA market and will have to either raise prices overseas or find space in their budgets to adjust to the new reality. The plan was issued as an advanced notice of proposed rule making and stakeholders will have 60 days to provide comment.
- Lion Air Plane Crashes Minutes After Take-Off From Jakarta: Updates
- Trump congratulates Bolsonaro on his victory
- Superb Svitolina bests Stephens to win 2018 WTA Finals
- Twitter Fumes Over Paul Pogba’s Unorthodox Penalty Technique
- Cardinals CB Peterson requests trade
- Red Dead Redemption 2's Download Time, Goodness
- How Hamilton can win the title in Mexico
- Mexico made an offer to migrants
- Global outcry over Khashoggi killing 'hysterical', Saudi official says
- Angelique Kerber fights to beat Naomi Osaka — WTA Finals
- NBC Officially Cancels Megyn Kelly Today
- Twins to name Rocco Baldelli as new manager
- Helicopter crash at Leicester City FC