 Health Care |
Health Care |
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Biden administration set to begin drug price negotiations |
The federal government is set to begin negotiating the price of the 10 most expensive prescription drugs, as Thursday marks the deadline for the administration to send drug companies its initial offer and justification. |
The companies have 30 days to accept or make a counteroffer. It's not likely they will accept anything without a major fight, considering there are numerous lawsuits against the administration from manufacturers and the industry's top lobbying group.
The companies have argued that the negotiation process is unconstitutional and amounts to forced price fixing, which could lead to lower profits, less money invested in research and development and, consequently, fewer drugs on the market.
Assuming the government prevails in the lawsuits, final prices will be announced on Sept. 1, though they won't take effect until 2026. The Inflation Reduction Act, which mandated the negotiation process, established a minimum price discount of 25 percent for a drug that is 9 to 12 years old. Older drugs could face discounts of up to 60 percent.
Manufacturers that don't want to take part in negotiations can withdraw all of their products from coverage under Medicare and Medicaid, but they would lose a highly lucrative income source.
The Department of Health and Human Services (HHS) has said the negotiation process will consider the selected drug's clinical benefit, the extent to which it fulfills an unmet medical need and its impact on people who rely on Medicare, among other considerations, such as costs associated with research and development as well as production and distribution.
In 2022, about 9 million Medicare enrollees spent $3.4 billion out of pocket on the selected drugs from companies, including Johnson & Johnson, Merck, Bristol Myers Squibb and AstraZeneca, the White House said.
The negotiation process is an opportunity for the administration to highlight President Biden's efforts at lowering health costs. Even if the companies win in court, the White House is aiming for a political win, with Biden is positioning himself as someone willing to take on the pharmaceutical industry.
Biden is leaning into lowering health care costs and picking fights with the drug industry to show what he could bring to a second term and contrast with likely GOP nominee former President Trump. |
Welcome to The Hill's Health Care newsletter, we're Nathaniel Weixel and Joseph Choi — every week we follow the latest moves on how Washington impacts your health. |
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How policy will be impacting the health care sector this week and beyond: |
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Branch out with a different read: |
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Mississippi eyes quicker Medicaid coverage in pregnancy to try to reduce deaths of moms and babies |
JACKSON, Miss. (AP) — Mississippi could allow Medicaid coverage earlier in pregnancy in an effort to improve health outcomes for mothers and babies in a poor state with the nation’s worst rate of infant mortality. With wide bipartisan support, the state House passed a bill Wednesday to allow up to 60 days of "presumptive eligibility" … |
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Local and state headlines on health care: |
- A surge in syphilis and a drug shortage cause Tennessee's public health agencies to ration penicillin shots (WPLN)
- Montana vows changes to avoid delayed contracts. Some health providers still await back pay (KFF Health News)
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Health news we've flagged from other outlets: |
- Red states explore new restrictions on trans rights (Pluribus News)
- Experimental pain drug may offer alternative to opioids for acute pain, study suggests (CNN)
- The broken promises of the NFL concussion settlement (The Washington Post)
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You're all caught up. See you tomorrow! |
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