Trump Changing Drug Price Plan
HHS secretary Alex Azar says the administration is changing a key element in its plan to lower drug prices because President Donald Trump wants the plan to go further than originally announced. The Hill reports that Azar spoke at an Axios event and said that under the original proposal some Medicare drug prices would be tied to lower prices paid in other developed countries, an idea known as the International Pricing Index.
Azar said that although the idea would have lowered prices from where they are now, they still would have been a certain percentage higher than in other countries. He said Trump was not satisfied with that plan and wanted it changed so that prices in the U.S. were lower than in other countries.
The report says it’s unclear if the proposal will ever take effect as Azar did not commit to finalizing it. “I cannot prejudge the president’s decision-making,” he said. The secretary indicated that the proposal would not be an executive order, but rather a formally proposed HHS regulation.
Congressional Republicans have pushed back against the plan, saying it breaks from traditional GOP policy by linking U.S. prices to those in other countries where there are price controls. And Democrats have praised the plan, while also saying it does not go far enough since it would only lower prices for physician-administered drugs for Medicare recipients, meaning that those with private insurance or obtaining drugs at a pharmacy would not benefit.