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During a speech Friday, the president promised that his administration's actions would reduce what consumers pay at the pharmacy and would end the abuse in the system that leads to high drug prices. He blasted drug makers, health insurers, pharmacy benefit managers and others for profiting off American patients.
The administration also released a page blueprint of the plan, entitled American Patients First. The blueprint seeks to increase competition and improve the negotiation of drug prices, as well as reduce consumers' out-of-pocket spending on medicines and create incentives to lower list prices.
Health and Human Secretary Alex Azar said it includes more than 50 moves that his agency has put into action or has planned. Unlike Trump's fiscal budget proposal, the majority of the actions don't need Congress' approval, senior administration officials said. The administration will also seek feedback on other potential policies.
The world's highest drug costs Trump also lashed out at foreign governments that "extort unreasonably low prices" from manufacturers. Industry and consumer groups largely supported the president's efforts to tackle drug costs.
Pharmacy benefit managers, which manage drug coverage and negotiate discounts for insurers, took the opportunity to tout their efforts to control costs.
Others, including those representing insurers, physicians, pharmacists and hospitals, blamed drugmakers for the problem. But AARP said there's no "justifiable reason" why Americans should have the world's highest drug costs.
The 5 most expensive drugs in the United States "AARP also strongly believes that it is critical that any proposals to lower prescription drug costs don't simply shift the costs around in the health care system without addressing the root problem: There are some promising ideas in Trump's plan, such as reining in pharmacy benefit managers, said Peter Bach, a physician who runs Memorial Sloan Kettering's drug pricing lab.
But he doesn't see much point in trying to change drug prices in other counties. However, the blueprint would affect many players in the drug supply chain. His administration has made several moves, though experts have said they mainly tinker around the edges of the problem.
I am working on a new system where there will be competition in the Drug Industry. Pricing for the American people will come way down! Trump realDonaldTrump March 7, During Trump's tenure, administration officials have provided some insights into how they intend to address the cost of prescription medicines.
The White House has made recommendations in the president's budget request and in a report issued by the White House Council of Economic Advisers. Among the proposed strategies listed on the fact sheet is allowing insurers in Medicare's Part D drug plans "greater flexibility Trump had promised on the campaign trail to give Medicare more of a role in bargaining.
Many health policy experts and consumer advocates say that the federal government could use its heft to negotiate much lower prices for the more than 57 million Americans in the Medicare program, rather than having insurers that provide Medicare Part D prescription coverage wring discounts from manufacturers.
Drug companies, however, have lobbied hard to prevent government involvement, and Republicans have generally not supported such a proposal.
Health and Human Services Secretary Alex Azar said the agency is focused on several problems in the drug industry. He noted that the agency will build on proposals in the president's budget, but said Trump "wants to go much, much further. Few expect the president to try to regulate what manufacturers charge for their drugs.
Insurers often receive big discounts for pricey, brand-name drugs from manufacturers. These concessions are usually negotiated by pharmacy benefit managers, who keep part of the rebate and pass the rest to insurers.
Just who gets those big drug rebates? The administration is looking to make these players share the discount with consumers, an idea the Obama administration also supported. This, in turn, increases the amount of money insurers and pharmacy benefit managers collect in rebates, giving them no incentive to keep prices down.
For seniors who are sometimes on fixed incomes, the pain is real. This is not acceptable. So requiring them to share the discount could raise rates for everyone, while benefiting the relatively few patients who require high-cost, brand name drugs.May 10, · Unlike Trump's fiscal budget proposal, the majority of the actions don't need Congress' approval, senior administration officials said.
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