Biden wanted to lower them so naturally he’s doing the opposite.
I think Democrats would be wise to make this a bigger story. Whether it materially affects people’s current prescription drug bill or not, the intention is obvious and people need to know about it:
The Trump administration’s first drug pricing action — rescinding a Biden executive order encouraging Medicare to help lower prescription costs — is befuddling drug pricing experts.
“It is perplexing why Trump would have included receding this drug cost executive order on Day One,” said Larry Levitt, executive vice president for health policy at KFF. “It at least sends a signal that Trump may not be serious about addressing drug costs.”
He’s joking, right? Trump not serious about addressing drug costs? Why, that would mean he doesn’t really care about the American people after all. That can’t be right.
This expert says that it’s unclear if this will actually impact the “models” which are in various stages of development:
In October 2022, former President Joe Biden issued an order directing the Center for Medicare and Medicaid Innovation to create several payment models to lower prescription drug costs. The agency announced three models in February 2023.
One model encouraged Medicare prescription drug plans to offer a co-payment for certain inexpensive generic drugs capped at $2 a month per drug. Another called on state Medicaid agencies to jointly create outcome-based agreements with manufacturers for pricey cell and gene therapies. The model is intended to ensure the price that states pay is based on the drug having its desired effect on improving patient health.
A third model would reduce Medicare funding on drugs cleared by the FDA under accelerated approval, which speeds up the endorsement of medications that fill an unmet need.
CMMI is taking applications for the cell and gene therapy model until Feb. 28. The center has yet to implement either of the other models.
He says that he doesn’t think rescinding the EO would necessarily stop these from continuing. I think that is extremely optimistic. They will want to stop it. However, he adds:
The really big question is what Trump will do with the Inflation Reduction Act and government negotiation of drug costs.
I don’t think there’s even the slightest doubt what he will do with both of those things.
I happened to mention this to a couple of people who haven’t been following politics lately and they were truly shocked and appalled to hear it. I think this is a very salient political issue and I hope that Democrats will jump on it and work it hard. So far, I haven’t heard a peep.