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Phia Group Media


Drug Pricing Still on the Ballot in 2020

By: Nick Bonds, Esq.
 

I doubt I am alone in feeling that 2020 has already crammed in roughly a decade’s worth of health crises, and we still have months to go. From murder hornets to the ever-present threat of the coronavirus, from wildfires turning the West Coast skies orange to so many hurricanes we are running out of names; our collective physical, mental, and emotional health has been through the ringer this year. Not to mention the tumbling dominoes of economic impacts wrought by all of the above, which by itself can have a substantial impact on our health.
 

The cost of prescription drugs, already high even before 2020 built up a head of steam, continues to be a source of financial pain for American households. Nearly 30% of Americans have reported not taking their prescription medicine as directed due to its cost. This is one of the most glaring examples of individuals’ medical decisions being driven not by medical judgment, but by financial circumstance. 
 

At the beginning of the year, prescription drug prices ranked top among the “pocketbook” issues most primary voters were focused on. Though the debate around Medicare for all became a clear fault line among the Democratic presidential nominee hopefuls, virtually all the candidates threw their support behind a plan to give Medicare authority to negotiate drug prices with manufacturers. They also tended to favor plans to facilitate importation of cheaper medications from overseas and reigning in drug makers’ penchant for manipulating the patent system to artificially delay development and marketing of low-cost generic drugs.
 

Since clinching the Democratic nomination, Vice President Biden’s stance on drug pricing reform has come into sharper focus. The Biden-Sanders “unity task force” published a detailed list of policy recommendations, including a plan for “bringing down drug prices and taking on the pharmaceutical industry.” The primary prongs of which include empowering Medicare to negotiate drug prices, pushing to keep drug price increases in line with inflation, capping prescription costs for seniors, and cracking down on anti-competitive practices among drug manufacturers.
 

Not to be outdone, President Trump recently announced a “hail Mary” effort on drug prices, signing his “Executive Order on Lowering Drug Prices by Putting America First” on September 13. Ostensibly, this order is designed to bring down domestic prices for prescription drugs by tying what Medicare pays for prescription drugs to the “most-favored-nation price” of those same drugs abroad. Specifically, capping Medicare’s rate to the lowest price for a pharmaceutical product that drug maker sells in a member country of the Organization for Economic Cooperation and Development (OECD).
 

It seems unlikely that this plan could be effectively implemented before the upcoming election, but it does show that the President still sees prescription drug prices as a viable campaign issue, even after campaigning on it in 2016 and hitting mostly dead ends in his efforts to address the issue in his first term. Recent polling shows that drug pricing remains one of the few healthcare issues where the President outstripped his Democratic challenger, and the President’s most-favored-nations policy appears to resonate among his base.
 

Whomever lands behind the Resolute desk in 2021, we can be sure that drug pricing reform will be high on their agenda. In the meantime, everyone stay safe, stay healthy, and be ready to vote on November 3.