Trump says new proposal will lower some U.S. drug prices

29 October, 2018, 11:02 | Author: Denise Dawson
  • Medicare reimbursement drug prices Medicare Part B

Health Secretary Alex Azar said President Trump's bid to tie what the US government pays for certain Medicare drugs to what other nations pay won't cripple innovation or access to vital treatments, even if the plan is one of Big Pharma's "ultimate nightmares". The administration's "American Patients First" blueprint for lowering drug prices, released in May, also proposed tackling what it calls "freeloading" by other countries.

Some Capitol Hill Republicans seemed cool to the plan, and it was unclear if Trump's move would yield political dividends.

"If the goal is overall out of pocket cost reduction for consumers, these proposals are promising and offer some of the boldest challenges to the medical establishment", said Patel, who worked on health policy in the Obama administration.

"The administration is imposing foreign price controls from countries with socialized health care systems that deny their citizens access and discourage innovation", Stephen Ubl, president of the Pharmaceutical Research and Manufacturers of America, said in a statement.

Trump's proposal would give Medicare the ability to negotiate with drug companies and take away cost-based fees for administering drugs that may encourage doctors to prescribe more expensive medications.

"Not anymore. Under our new plan the Department of Health and Human Services would allow Medicare to determine the price it pays for certain drugs based on the cheaper prices paid by other nations".

"Same company. Same box".

Currently, Medicare pays the average list price (ASP) for Part B drugs plus 6%, to compensate providers for the costs of administration and maintaining inventory - the so-called "buy and bill" model.

- Don't expect immediate rollbacks.

"All of this means that the Medicare program and its beneficiaries spent an additional $8.1 billion-47% more-on these drugs than it would have if payments were scaled by the calculated global price ratios", HHS Secretary Alex Azar said in a post on Twitter. The administration's authority to implement the rule exists under the authority of the Center for Medicare and Medicaid Innovation, which was created under the Affordable Care Act, explained Rachel Sachs, an associate professor of law at Washington University in St. Louis, in a phone interview.

Donald Trump may be trying to direct voters' attention to a migrant caravan in Central America, but he also knows it's a health-care election.

The Trump administration's new plan to pay for certain drugs in Medicare based on global prices quickly set off a war with the drug industry after it was unveiled Thursday - and both sides are charging ahead with aggressive statements that the other is ignoring patients.

Elina Svitolina’s defensive masterclass seals WTA Finals win against Stephens
Svitolina booked her spot in the last four by coming from a set down to defeat defending champion Caroline Wozniacki . Stephens, the 2017 US Open champion, controlled the first set but Svitolina broke three times in the second.

Khashoggi's son shakes hands with Saudi royal blamed for father's death
Mr Erdogan also questioned why Khashoggi's body had not been found even after Saudi authorities admitted to his killing. Khashoggi was a Washington Post columnist and lived in the USA , having fled Saudi Arabia in September a year ago .

Wests defend Jason Hughes after David Warner’s club cricket walkoff
The batsman was playing for club side Randwick-Petersham and made a decision to leave the field when he was unbeaten on 35. It comes after Warner was banned from worldwide and state cricket in March after a ball-tampering scandal.

In tweets Thursday morning, HHS Secretary Alex Azar referred to Trump's criticisms of other governments that pay significantly less for drugs than does the U.S. government.

Drugmakers immediately protested, arguing the plan amounts to government price-setting.

In 2015, Medicare spent $26 billion on Part B 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.

HHS Secretary Alex Azar criticized a system in which other countries to pay significantly less for drugs than the USA government.

"Something has to change in how Medicare pays for physician-administered drugs", Azar said at the Brookings Institution think tank in Washington. "It doesn't sound like any "negotiation" I've ever had", he said.

President Donald Trump tried Thursday to make good on a campaign vow to lower drug prices - attacking "foreign freeloaders" and proposing significant changes to how Medicare pays for many drugs.

Trump's administration plans to set up an "international pricing index", in which some U.S. drug prices would be linked to what 16 other countries pay, ultimately to get to a lower price in line with what those countries are paying, Politico reports. Officials said they're seeking input on how to select the areas of the country that will take part in the new pricing system. Azar said politics would have nothing to do with it.

This supports a recently released HHS report, which found USA drug prices were almost twice as high as those in foreign countries. Most of the drugs in the Part B plan are a kind of drug called a "biologic", or drugs made of living organisms (usually cells).

Under the plan Medicare would set prices at 126 percent of the average price other countries pay for the same drugs.

The HHS study, for example, shows that the USA spent about $1.7 billion in 2016 on Rituxan, a drug made by Biogen Inc. that treats non-Hodgkin's lymphoma.

According to HHS's projections, if they come into effect, the rule would save $17.2 billion over five years. Beneficiaries would save through lower cost-sharing.

Recommended:



Popular

Iran Sanctions From November 5 To Make Fuel Dearer
Yet, while oil companies are finally starting to prosper, the sharp crude oil price drop may cause many to rein in spending plans. Oil has become unglued from strong demand and tight supply figures as global stock markets shake with fear.

Police closing streets around Fenway tonight with possibility of Red Sox win
He drove Price's first pitch 402 feet to the opposite field and into the right field pavilion. Pearce hit two home runs, a night after his homer and three-run double spurred a late rally.

Eagles, Patriots and Saints Interested in Patrick Peterson
A seven-time Pro Bowler, the 28-year-old Peterson is under contract with the Cardinals through the 2020 season. After a couple of weeks of turmoil surrounding the team, the Suns were able to trade Bledsoe on November 7.

Asian shares mostly lower despite USA markets rally
October is typically a bumpy month for the markets, but the declines have made for one of the worst months in several years. Volatility in US markets has weighed on Asia for some time as trade tensions between the USA and China heighten.

What does Lewis Hamilton need to win F1 title in Mexico?
But Lewis Hamilton is concerned about the difference in performance between his Mercedes vehicle and the Red Bull machines. The focus for both Mercedes drivers will remain on securing the constructors' crown for a fifth year in a row, however.

8 natural disaster hits Greek island, no major damage reported
The quake rattled the whole of western Greece and was felt in Kefalonia, Corfu, and Crete according to the USGS. Italy's Il Messaggero online news site said the quake was felt hundreds of kilometres away in southern Italy.

Royal couple bid Australia farewell as they head to New Zealand
The Duke and Duchess of Sussex attended the Australian Geographic Society Gala Awards at the Shangri-La Hotel in Sydney. Reuters/Phil Noble David Beckham attends the Invictus Games Sydney 2018 closing ceremony in Sydney, Australia.

Cavs' Love to miss against Pistons with sore left foot
Drummond entered the game scoring 17.1 points per game on Boston in his career, the highest against any opponent. Robert Williams III scored the first points of his National Basketball Association career in emphatic fashion.

Khashoggi fiancée snubs Trump invitation to White House
Turkish President Recep Tayyip Erdogan has called on the Saudis to admit who ordered the killing and where the body is. Khashoggi?" he said, calling it "pure demagoguery to call for a halt" to exports over the killing.

Real Madrid round-up: tactics, pre-game plans, Courtois and Modric
Barcelona sit level with Inter on six points in Group B. "I have decided on my side but I won't say what it will be", Valverde said.