If a bipartisan deal is going to be struck this year, it will deal with lowering prescription drug prices, according to an Axios report.
“The White House and top lawmakers from both parties think a bill to lower drug prices has a better chance of becoming law before the 2020 election than any other controversial legislation,” says Caitlin Owens of Axios. “Republican politics on drug prices have changed rapidly. The White House has told Democrats it has no red lines on the substance of drug pricing – a position that should leave pharma quaking.”
The only red line for the White House is tying drug legislation to revisions of the Affordable Care Act. But Trump officials have given the green flag to using Medicare negotiations as leverage to lower drug prices.
Axios indicates momentum is growing for legislative action before the August recess, viewed by many as the last fertile moment for compromise before the start of the 2020 presidential election political desert when nothing can get approved. Bills are already moving in Congress aimed at influencing drug prices by limiting extended monopolies and expanding access to generic prescription drugs.
Republicans are introducing bills that previously would have been viewed as liberal. Texas Senator Mike Cornyn proposes giving the Federal Trade Commission the power to bring antitrust suits against pharmaceutical companies that use patents to discourage competition. House GOP leader Mark Meadows is part of a bipartisan group exploring a proposal to tie Medicare reimbursement rates to the international price of prescription drugs. Florida Senator Rick Scott introduced legislation preventing US drug companies from charging higher list prices than in Canada, France, Britain, Japan and Germany.
This spate of activity around drug pricing has put the pharmaceutical industry on high alert. Drug company officials have warned proposed legislation could slow investments in promising new drug treatments and upset the “pharmaceutical ecosystem.” That is an appeal aimed at President Trump who has expressed strong support for drug therapy advancement.
Getting anything of significance accomplished in Congress is never easy. Partisan fights over what to do in response the Mueller report, health care and border security could derail any bipartisan effort on prescription drugs. The embrace by Democrats for a single-payor Medicare for All system could be a particular problem in that it could exacerbate the existing price differences between Medicare and private health insurance.
“Anything that gets done would need to be passed before the August recess, which itself is growing more unlikely as time passes and fights over the ACA and other issues erode whatever bipartisan collaboration that might have existed," a former Trump administration official told Axios.
The prospect of legislative action on drug pricing, supported by the Trump administration, has taken its toll on the stock prices of major pharmaceutical companies – and sharply lowered the multi-million compensation of their CEOs.