Trump Administration Takes 2 L’s on Plans to Lower Prescription Drug Prices; Vows to Keep Fighting for American People

  • Within 48 hours, the Trump administration faced two major hurdles in trying to lower the costs of prescription drugs for consumers.
  • This week, a federal court ruled against the Trump administration’s plan to make it mandatory for drug companies to publish the price of prescriptions in their advertising. If the plan had prevailed, changes would’ve started this week.
  • On Thursday, “the administration backed down from it push to eliminate prescription drug rebates after concerns grew that killing the rebates would adversely affect senior citizens.”
  • An estimate from a congressional agency said the plan would’ve come at a $177 billion cost to taxpayers over 10 years.
  • White House spokesman Judd Deere said “the rebate proposal was withdrawn based on careful analysis and thorough consideration.”
  • Due to the setbacks, Trump “is now focusing his drive to curb drug costs on congressional efforts aimed at helping people on Medicare and younger generations covered by workplace plans.”
  • Peter Bach, director of the Center for Health Policy and Outcomes at New York’s Memorial Sloan Kettering Cancer Center, said: “This is a big setback. The rebate rule was not good policy (since) it would have increased spending on prescription drugs even if it mildly reduced out-of-pocket costs in some cases. But nevertheless this was a cornerstone of the blueprint.”
  • In a statement, Deere said: “The Trump administration is encouraged by continuing bipartisan conversations about legislation to reduce outrageous drug costs imposed on the American people, and President Trump will consider using any and all tools to ensure that prescription drug costs will continue to decline.”
  • In a statement, Jim Greenwood, head of the Biotechnology Innovation Organization, said: “The administration has abandoned one of the only policy solutions that would have truly lowered what patients are forced to pay out of pocket for the medicines they need.”
  • Prescription drug inflation has stabilized overall, and there have been more monthly declines than increases, which the Trump administration has credited Trump for, but experts say the reasons aren’t readily evident.

Reference Links

  • AP: Setbacks for Trump’s drive to lower prescription drug costs READ
  • CNBC: Trump’s losses in drug pricing battle should be a free market wake-up call to him READ
  • TIME: Trump Administration Abandons Plan to Overhaul Drug Rebates READ
  • Reuters: White House scraps key plan to lower U.S. drug prices; may target drugmakers READ

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