WASHINGTON – Unable to reach an agreement with Congress to cut drug costs, President Donald Trump on Friday moved on his own to allow the importation of cheaper drugs, along with other limited steps that may have some appeal to the election year.
At a White House ceremony, Trump signed four executive orders. One was about import. The others would target drug manufacturers’ reimbursements directly to patients, provide insulin and EpiPens at deep discounts to low-income people, and use lower international prices to pay for some Medicare drugs.
Trump called his directives powerful, but they mostly update previous administrative ideas that have yet to take effect.
“I am taking apart the system that has many decades,” he declared, promising “massive” savings.
Consumers may not notice immediate changes, as the orders must be executed by the federal bureaucracy and could face legal challenges.
Democrats, meanwhile, are eager to draw a contrast between Trump and his own radical plans to authorize Medicare to negotiate lower prices with drug companies, an idea the president had endorsed as a candidate. A bill by President Nancy Pelosi has already passed the House and aligns with presidential candidate Joe Biden’s approach.
Friday’s event was definitely not the signing of the law the White House had ever hoped for. Trump took office complaining that pharmaceutical companies were “running away with murder” and vowing to bring them under control. Almost four years later, things are very similar despite the recent moderation in price increases.
Trump withdrew his blows, Pelosi said in a statement. “After promising he would ‘bargain like crazy’ for lower prescription drug prices, it is clear that President Trump did not want to bargain at all,” he said, adding that if Trump is serious about cutting prices, he should tell Senate Republicans approve it. bill.
A push to enact important legislation this year stalled in Congress. Although Trump told Republican senators that lowering prescription prices is “something you have to do,” many are reluctant to use federal authority to compel drug makers to charge less.
Meanwhile, Democrats in Congress estimate that the elections will strengthen their hand and they will finally be able to pass a law authorizing Medicare to negotiate prices directly. Neither side in Congress has had an incentive to negotiate, and the White House has been unable to carry out Trump’s will.
Last year, the House passed Pelosi’s Medicare bargaining law, which would have limited out-of-pocket drug costs for seniors and also expanded the program’s benefits. He had no way in the Republican Senate, and the White House calls it unfeasible.
But there was an alternative. A bipartisan Senate bill backed by Trump failed to give Medicare bargaining power, but would have limited annual price increases and limited costs for seniors. The bill was approved by a Senate committee, but was never presented to the entire body.
“It is unclear why the administration has not made a greater effort to line up the votes to obtain a bill in the Senate and an agreement with Congress, given strong public support to reduce drug costs,” Tricia said. Neuman, Medicare expert at the nonpartisan Kaiser Family Foundation.
Americans remain concerned about drug costs, and nearly 9 in 10 say in a recent Gallup-West Health survey that they are concerned that the pharmaceutical industry will take advantage of the coronavirus pandemic to drive up prices. Another Gallup-West Health survey found that 65% said the Trump administration had made little or no progress limiting increases in prescription drug costs.
It is a particularly important issue for older people, who depend on medications to manage the medical problems associated with advancing age. Trump’s support has eroded among the elderly during the federal random response to COVID-19.
Drug makers continue to strongly oppose government efforts to curb prices. The Trump administration “has decided to pursue a radical and dangerous policy to set prices based on the rates paid in countries it has labeled as socialist, which will harm patients today and in the future,” said Stephen Ubl, head of the lobby. pharmacist. a declaration.
Trump delayed the effective date of the international pricing order for a month, to see if he can reach an agreement with the industry.
The four orders would be:
– Allowing states, wholesalers, and pharmacies to import FDA-approved drugs from foreign countries and sell them in the U.S. Trump has long complained that countries where the government sets drug prices are taking advantage of American consumers. The order includes a special provision to allow wholesalers and pharmacies to re-import insulin and biological drugs.
– Use the lowest price among other economically advanced countries to establish what Medicare pays for certain drugs administered in a doctor’s office, including many cancer drugs. This would apply to the more expensive drugs covered by Medicare “Part B”, which pays for outpatient care. Drug makers are particularly wary of the approach, as Democrats want to use it more widely to allow Medicare to directly negotiate prices.
– Direct federally funded community health centers to pass the discounts they now get for insulin and EpiPens directly to low-income patients.
– Make sure reimbursements paid by drug manufacturers now pay benefits managers and insurers directly to patients when they buy a drug. Last year, the White House withdrew an earlier version of the proposal, after the Congressional Budget Office estimated it would cost taxpayers $ 177 billion in 10 years.
