Trump proposes ‘global’ drug-price plan
WASHINGTON — President Donald Trump proposed Thursday that Medicare pay for certain prescription drugs based on the prices paid in other advanced industrial countries — a huge change that could save money for the government and for millions of Medicare beneficiaries.
As part of a demonstration project, or real-world study, covering half the country, Medicare would establish an “international pricing index” and use it as a bench mark in deciding how much to pay for drugs covered by Part B of Medicare.
Trump said his plan takes aim at “global free riding” that forces Americans to subsidize lower drug prices in other countries.
“Americans pay more so that other countries pay less,” Trump said.
Trump’s announcement was part of a flurry of initiatives emerging from the White House before November’s midterm elections, when Democrats might take control of the House — and possibly the Senate. Democrats have focused their campaigns on health care, hammering Republicans on the high cost of prescription drugs and asserting that Republicans would undo protections for people with pre-existing medical conditions — one of the most popular provisions of the Affordable Care Act.
The soonest the Trump administration’s proposal would go into effect is late 2019 or early 2020.
Trump has the authority to use the Center for Medicare and Medicaid Innovation created by the Affordable Care Act to implement the proposal. That agency has wide discretion to conduct demonstration projects. The Trump administration will accept public comments before starting the project.
The proposal is likely to face fierce political resistance from drugmakers, some healthcare providers and some Republicans in Congress — and it could be subject to legal challenges.
Trump’s announcement came after his administration released a government study that found that Medicare was paying 80 percent more than other advanced industrial countries for some of the most costly physicianadministered medicines.