Pharma Concerns Raised Again over US Reimbursement After Trump Vows to Bring Down Drug Prices
The pharma industry has once again become concerned over the future for reimbursement in the US following President Trump's State of the Union address.
The President promised to "substantially" crack down on US prices for medicines, vowing to make it one of his Government's top priorities. He bemoaned how unfair it was that Americans paid significantly higher drug prices than in other countries. "Prices will come down," he warned.
However, does pharma really have that much to worry about? No, according to some commentators. Rachel Sachs, a professor at Washington University who focuses on drug pricing, said: "Despite continuing rhetoric that the pharmaceutical companies are getting away with murder, he has done absolutely nothing on this issue." He first promised to do something about the price of drugs during his election campaign in 2016.
The pharma industry has sought to move discussion away from prices to out-of-pocket costs. Some believe that this strategy has paid off. The President has also filled executive roles with people who have close ties with pharma - for example, his new Head of Health and Human Services, Alex Azar, was recently in a senior role at Eli Lilly.
Len Nichols, a health policy professor at George Mason University, said about the pharma industry: "I think they think they had a good year. They dodged a bullet. I think of the pharmaceutical pricing issue as somewhat of a titanic struggle between pharma and the plans. If you think of it that way…pharma won Round 1."
Comment
There is growing pressure on the pharma industry around the issue of drug reimbursement all around the world, as demand continues to grow and budgets are squeezed. Pharma in the UK are familiar with the struggles with getting drugs reimbursed at satisfactory prices even after successful drug trials. The US is a different ball game - with a much bigger market and paying larger sums too. The President's comments have been a concern, but given the lack of action in the first year of his administration, the jury is out as to whether this will be a problem for the industry. His actions have not been as combative as many had feared, but his repetition of these promises in the State of the Union address will raise concerns for the industry.