Washington Targetting Drugmakers?
- Tuesday, 16 July 2019 06:40
NEW YORK/WASHINGTON — The Trump administration on Thursday scrapped one of its most ambitious proposals for lowering prescription medicine prices, backing down from a policy aimed at health insurers and raising the possibility of new measures focused on drugmakers.
The abandoned proposal would have required health insurers to pass on billions of dollars in rebates they receive from drugmakers to Medicare patients.
The decision represents a new setback to U.S. President Donald Trump’s efforts to deliver on a pledge to lower drug prices for consumers before the November, 2020 elections, when Republicans want to capitalize on voter concern over high healthcare costs.
It allows companies like Cigna Corp and CVS Health Corp, which negotiate rebates with drugmakers on behalf of the government’s Medicare program, to continue to benefit from those discounts.
Budget Deal helps Seniors with RX costs
- Monday, 09 April 2018 14:20
From Bloomberg, 4/6/18. Click here for full article
Deep in a budget deal Congress passed earlier this year — just 118 words in Section 53116, a little before passages on prison reporting data and payment yields for seed cotton — was a hit to pharmaceutical companies that will cost them billions, and could signal more losses to come.
Despite an intense lobbying push, lawmakers changed a Medicare rule, putting manufacturers on the hook for more of seniors’ prescription costs. The companies will have to offer a much more generous discount to beneficiaries who fall into the so-called donut hole coverage gap, marking down retail costs by 70 percent instead of the current 50 percent.
It was a rare defeat for some of the biggest spenders in the political influence game and raised new questions about how they’ll fare in upcoming battles. Lawmakers have introduced bills that would squeeze the industry, and President Donald Trump has said he will roll out proposals this month to curb drug prices.