President Trump calls for lower drug prices in State of the Union address

Written by Shayna Korol | February 06, 2019 | Print  |

President Donald Trump called for Congress to lower U.S. drug prices during his State of the Union address Feb. 5, CNBC reports.

The Trump administration recently proposed a ban on "backdoor deals" cut by pharmaceutical companies with middlemen who get preferred status for their products through Medicare. Currently, pharmaceutical companies pay rebates to pharmacy benefit management companies, such as CVS Health, to include their medications on Medicare Part D plans. The new proposal would leave PBMs receiving just a flat fee for including drugs on those plans. It would also pass approximately $29 billion in drug company rebates to consumers.

"It is unacceptable that Americans pay vastly more than people in other countries for the exact same drugs, often made in the exact same place," President Trump said, according to CNBC. "I am asking Congress to pass legislation that finally takes on the problem of global freeloading and delivers fairness and price transparency for American patients. We should also require drug companies, insurance companies and hospitals to disclose real prices to foster competition and bring costs way down."

President Trump delivered the address after the longest government shutdown in U.S. history. On Jan. 25, he and Democratic leaders agreed to re-open the government for three weeks.

More articles on quality:
Privately owned ASCs linked to higher tympanostomy tube use in children — 3 study findings
AMA & MedStar Health join forces to combat EHR safety issues: 3 details
3 top insights from ASC infection control experts

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

To receive the latest hospital and health system business and legal news and analysis from Becker's Hospital Review, sign-up for the free Becker's Hospital Review E-weekly by clicking here.