Trump Makes New Effort to Push Down Drug Prices

New Version

The White House released that July 24 order on Sunday, but also announced that it had been rescinded. The new order issued Sunday echoes the earlier order's provision on Part B, which refers to the Medicare plan that encompasses therapies administered in a doctor's office or hospital, but adds a section on Part D, the prescription drug benefit.

"With scientists and researchers at America's biopharmaceutical companies working around the clock to fight a deadly pandemic, it is simply dumbfounding that the Trump administration would move forward with its threat to import foreign price controls and the inevitable delays to innovation that will follow," Biotechnology Innovation Organization CEO Michelle McMurry-Heath said in a statement. "We will use every tool available — including legal action if necessary — to fight this risky foreign price control scheme."

Stephen Ubl, chief executive officer of the drug industry's largest trade organization, called the White House approach "irresponsible and unworkable."

"They are now expanding the policy to include medicines in both Medicare Part B and Part D, an overreach that further threatens America's innovation leadership and puts access to medicines for tens of millions of seniors at risk," said Ubl, head of the Pharmaceutical Research and Manufacturers of America.

And the U.S. Chamber of Commerce, typically a reliable backer of Republicans, said in a statement that Trump's "flawed and dangerous policy" was coming at "the worst possible time."

"The U.S. Chamber is assessing options to challenge this misguided policy," said Neil Brady, the organization's chief policy officer.

Plan's Opponents

The planned order drew ire from the drug industry when it was broached in July. Pharmaceutical groups ran advertisements against the measure, as Trump began touting the as-of-yet-unspecified policy at campaign rallies.

Trump said at the time that he would give the industry 30 days to aid him in finding an alternative solution to cut drug costs, and was open to meet with those in the sector to find a compromise. No agreement was announced.

Former Republican representative and longtime industry lobbyist James Greenwood has suggested Trump's "most favored nations" order contradicts his other political positions. "The president rails against socialist medicine, but he's willing to import socialist pricing models into the United States," Greenwood told Bloomberg in February, as the Trump administration began developing the plan.

Democrats have also raised concerns. House Speaker Nancy Pelosi said the moves took "no real action" to lower prices.

Trump has sought to improve his standing on health-care issues, particularly with older voters, as negative sentiment over his handling of the coronavirus has mounted.

Research from the data firm 0ptimus found has found the pandemic has activated a new group of "Coronavoters" who pose a threat to his presidency: Republicans for whom the virus was the last straw, and "low-propensity" Democratic and independent voters who will mobilize to the polls come November.

— Read Trump Rule to Put Prices in Drug Ads Is Shot Down by Judge, on ThinkAdvisor.

— Connect with ThinkAdvisor Life/Health on Facebook, LinkedIn and Twitter.