Mon, 10 Feb 2025

Mon, 10 Feb 2025 Trump is unlikely to end Medicare drug price talks — here's what that means for patients and pharma

Trump could either weaken the negotiations in a way that benefits the pharmaceutical industry, or try to achieve even deeper savings to outdo his predecessor.
1. Potential changes in negotiations: The Trump administration may reinterpret guidelines, revise what Medicare considers a single product for negotiation, or change how prices are set. 2. Looser standards for competition: The Trump administration might have looser standards for determining whether a drug has competition in the market and should be exempt from negotiated prices. 3. Bigger question is price negotiation aggression: How aggressively Medicare will negotiate prices under Trump is still unknown, and could impact how much revenue drugmakers lose from lower prices. 4. Pill penalty changes unlikely: Major changes to the pill penalty, which affects biologics like vaccines, are less likely without Congressional support. 5. Bipartisan legislation for PBM reform: Bipartisan legislation has been introduced to reform pharmacy benefit managers (PBMs), but it's unclear if it will pass Congress. Possible scenarios: 1. Administrative changes: The Trump administration could make administrative changes to the program, such as revising guidelines or reinterpretating laws. 2. Legislative changes: Bipartisan legislation may be introduced to change the negotiation program, but its passage is uncertain. 3. Court decisions: If the Trump administration stops defending the program in court, judges may make decisions without opposition. Implications: 1. Drugs prices: The extent of price reductions under Trump's administration is still unknown and could impact drugmakers' revenue. 2. Pharmaceutical industry: Changes to the negotiation program could affect the pharmaceutical industry, particularly for companies with biologics or small-molecule drugs. 3. Patients and taxpayers: Patients and taxpayers may benefit from lower prices if Medicare negotiations are more aggressive under Trump. Overall, the article suggests that while some changes are possible under President Trump's administration, it is unclear how they will impact drug prices and the pharmaceutical industry as a whole.
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