Trump Delivering On Drug Price Reductions?
President Donald Trump came out swinging a few months ago by promising drug price reductions for Americans. And while his policymaking can be seen as messy, in this case it seems to be paying dividends. After recently announcing 100% tariffs on brand drugs, at least one big maker has come to the table with some concessions. Pfizer agreed to provide all of its prescription drugs in the Medicaid program at Trump’s desired most-favored-nation (MFN) drug pricing (where the U.S. would get the lowest price given in any developed country). Pfizer also agreed to offer many of its drugs at a significant discount direct to consumer. Savings will be as high as 85% and be about 50% on average.
The administration indicates other deals are in the works. The White House also announced it was rolling out a direct-to-consumer website with medications at discounted prices. The new website is called TrumpRx. In return, Pfizer said it will be given a three-year “grace period” from tariffs.
I do give credit to Trump for beginning to move usually intractable Big Pharma, whose gospel almost always has been to be intransigent and wait out administrations. But I have some fundamental questions. First, is it real and holistic drug price reform that saves consumers and the system? Second, will it derive more benefits faster than the Medicare drug price negotiations? So far, I am not sure. Medicaid is already deeply discounted through a rebate program. The deal is with one drug maker and most Americans would have to go direct to consumer to get discounts on a subset of drugs. Most will stay with insurance, which is not part of the deal. Discounts appear to be on average a little more than what net pricing after rebates are right now, but are not earth-shattering. Is this more PR from Big Pharma to avoid real change? Did Trump get hoodwinked? Stay tuned for my analysis in a coming blog.
Additional articles: https://www.fiercehealthcare.com/providers/white-house-announces-new-prescription-drug-website-trumprx and https://www.modernhealthcare.com/insurance/mh-phrma-discount-drug-website-trump-deadline/ and https://thehill.com/policy/healthcare/5528960-trump-pfizer-drug-prices/ and https://thehill.com/policy/healthcare/5527702-trumps-deadline-on-drug-prices-arrives-what-next/
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#trump #drugpricing #branddrugmakers #tariffs
Government Shuts Down At Midnight
Democrats in the Senate voted down for a second time a 7-week funding measure sponsored by the GOP to keep the government open. Thus, the government shuts down as of midnight October 1. Democrats say they need extension of the expiring Exchange premium subsidy enhancements as well as other healthcare reduction rollbacks in order to support the bill. Each party is counting on the other to be blamed. Three Democrats voted with Republicans. The GOP’s Rand Paul voted no. Lisa Murkowski voted yes this time. The final vote was 55-45, but 60 votes are needed to invoke cloture.
Essential services will continue operating. This includes healthcare entitlements. However, as many as 40% of healthcare agency staff will be laid off. Operations will come to a halt and payments delayed.
In other news, a Health Affairs Forefront blog concludes that Medicaid work requirements will not increase employment. Work requirements were included in the budget reconciliation bill and will lead to millions losing coverage.
Healthcare policy group KFF published an analysis that concludes that Exchange premiums for those receiving subsidies will more than double in 2026 when subsidy enhancements expire – an average of $888 in 2025 and $1,904 in 2026. Subsidized enrollees across the income spectrum will see major hikes.
Additional articles: https://www.modernhealthcare.com/politics-regulation/mh-government-shutdown-democrats-chuck-schumer/ and https://www.modernhealthcare.com/politics-regulation/mh-government-shutdown-healthcare-hhs-cms/ and https://www.healthaffairs.org/content/forefront/leading-health-policy-scholars-medicaid-work-requirements-won-t-increase-employment and https://www.kff.org/affordable-care-act/aca-marketplace-premium-payments-would-more-than-double-on-average-next-year-if-enhanced-premium-tax-credits-expire/
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#governmentshutdown #crs #ffy2026 #congress #trump #healthcare #coverage #exchanges #medicaid #hhs #cms
https://thehill.com/homenews/senate/5530057-government-funding-bill-vote-shutdown
— Marc S. Ryan
