Trump prescription plan doesn’t include Medicare-negotiated pricing
Published by McKnight’s LTC News
President Donald Trump’s “blueprint” for lowering prescription costs goes after pharmacy benefit managers but stops short of recommending Medicare-negotiated prices, a plank he campaigned on in 2016.
Though Trump on Friday afternoon called for eliminating the middlemen who “became very, very rich” negotiating prices for insurers and large employers, the 45-page plan offers no specifics as to how he’ll limit the role they play.
PBMs have come under increasing scrutiny since the president’s economic advisory council issued a February report that highlighted their dominance in senior healthcare settings.
Some critics said Trump’s new focus on PBMs allows drug makers to slip off his radar, and industry stocks rose after the speech — a sign that pharmaceutical investors didn’t feel threatened by Trump’s plan.
The Senior Care Pharmacy Coalition has long called for stricter controls. In a statement made just before Trump’s speech, the group lauded the administration’s “objective assessments of a drug pricing marketplace and regulatory framework failing consumers and failing our nation.”
Coalition President and CEO Alan G. Rosenbloom expressed concern about a dramatic round of mergers and acquisitions among insurance companies, PBMs, distributors, providers and others resulting in “worrisome consolidation.”
Other seniors advocates called the blueprint a good first step, though some had hoped the president would empower the government to play a larger role in price setting.
“AARP has long supported … allowing the Secretary of Health and Human Services to negotiate lower drug prices on behalf of millions of Medicare beneficiaries,” Executive Vice President and Chief Advocacy & Engagement Officer Nancy LeaMond said in a statement.
AARP leaders said they also hoped to see Trump address drug imports, reduce exclusivity for high-priced biologic drugs, prohibiting pay-for-delay deals between brand and generic drug companies, and demand greater transparency.
The blueprint, which raised a series of questions about the drug-pricing chain and touted Trump’s previous budget initiatives aimed at Medicare Part D reform, moved away from many of the specific proposals he touted while campaigning.
The president does want stricter policing of delay tactics, to make advertisements more transparent about pricing, and to stifle gag clauses that prevent some consumers from learning about rebates and lower-priced drug alternatives.
“The drug lobby is making an absolute fortune at the expense of American consumers,” Trump said. “We are putting American patients first.”
Recent Posts
-
Experts fear damage to long-term care pharmacies as CMS touts newly negotiated drug prices
Even as the federal government on Thursday touted the billions of dollars in savings seniors can expect to see from newly negotiated, lower drug costs, pharmacies that supply long-term care facilities are warning of dire consequences.
-
Senior Care Pharmacy Coalition & “Save Senior Rx Care” Release Statement on Biden Administration’s Medicare Drug Pricing Announcement
The Senior Care Pharmacy Coalition (SCPC), the leading national voice for the long-term care pharmacy community, and the new Save Senior Rx Care campaign released a statement today in response to the new drug pricing announcement: “Today, the Biden Administration released the negotiated 2026 prices for the ten most expensive Medicare Part D drugs, as […]
-
LTC pharmacies demand ‘sustainable’ payment model ahead of 2026 drug-pricing changes
Many of the nation’s long-term care pharmacies are going to fall below “break-even” and may be forced out of business without additional support when drug-pricing policy changes kick in, sector advocates warned Wednesday.
Stay in the Know
Get the latest news and updates on issues impacting the long-term pharmacy community.