[Ip-health] Trump and Prescription Drug Prices

Ma Gagnon MarcAndreGagnon at cunet.carleton.ca
Fri Nov 18 10:00:27 PST 2016


The CMS number from the press release is a bit problematic for two reasons: it does not include obtained rebates (for 2015) and it seems to include co-pays and deductibles paid out of pocket by enrollees.
In terms of what is paid by the Federal government under Medicare Part D, the number was $89.5 billions according to annual report of the trust funds (p.10): www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/ReportsTrustFunds/downloads/tr2016.pdf<http://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/ReportsTrustFunds/downloads/tr2016.pdf>
All the best,
Marc-André

-----------------------------------------------------------
Marc-André Gagnon, PhD
Visiting Professor, University of Ottawa
tel: 613-562-5800 x3286
e-mail: ma_gagnon at carleton.ca<mailto:ma_gagnon at carleton.ca>
Twitter: @MA_Gagnon

Ottawa Centre for Health Law, Policy and Ethics
57 Louis-Pasteur
Ottawa, ON (Canada)
K1N 6N5




From: jamespackardlove at gmail.com [mailto:jamespackardlove at gmail.com] On Behalf Of Jamie Love
Sent: November-18-16 9:31 AM
To: Ruth Lopert
Cc: Ma Gagnon; Matthew Flynn; Ip-health
Subject: Re: [Ip-health] Trump and Prescription Drug Prices

These days total US prescription drug spending is more than $300 billion.  Near $400 billion by 2014, in some estimates, and predicted to reach $550 by 2020 by one forecast.  Medicare spending on drugs is of course quite a bit less than $300 billion, but still a lot of money.   If I am reading the CMS press release correctly, $137.4B in 2015 spending for Part D, $24.6B for Part B, and more spent in other Medicare programs, Medicaid, VA, DOD, etc

Saving $300B in medicare was clearly a ludicrous claim by Trump.  But it was a signal to voters he would do something about drug prices.   Now it looks like that was just another campaign statement that was designed to harvest votes, but not to help voters post election.


https://www.
cms.gov/Newsroom/MediaReleaseDatabase/Fact-sheets/2016-Fact-sheets-items/2016-11-14.html<http://cms.gov/Newsroom/MediaReleaseDatabase/Fact-sheets/2016-Fact-sheets-items/2016-11-14.html>
https://www.statista.com/statistics/272181/world-pharmaceutical-sales-by-region/

https://healthcare.globaldata.com/media-center/press-releases/pharmaceuticals/us-pharmaceutical-market-value-will-approach-550-billion-by-2020-says-globaldata

On Fri, Nov 18, 2016 at 2:20 PM, Ruth Lopert <ruth.lopert at gmail.com<mailto:ruth.lopert at gmail.com>> wrote:
Isn't $300 billion the total annual US spend?

On Thu, Nov 17, 2016 at 9:23 AM, Ma Gagnon <MarcAndreGagnon at cunet.carleton.ca<mailto:MarcAndreGagnon at cunet.carleton.ca>> wrote:
Yes, but this was pure BS. Medicare part D buys around $75 billions/year of prescription drugs.
Difficult to save $300 billions out of a budget of $75 billions...
I had a paper on this with Sidney Wolfe: http://carleton.ca/sppa/wp-content/uploads/Mirror-Mirror-Medicare-Part-D-Released.pdf
Note that by itself, Medicare Part D represents 7% of the world's market for prescription drugs, the bargaining power could be huge but we estimated potential savings at around $16 billions/year.
All the best,
Marc-André

-----------------------------------------------------------
Marc-André Gagnon, PhD
Visiting Professor, University of Ottawa
tel: 613-562-5800 x3286<tel:613-562-5800%20x3286>
e-mail: ma_gagnon at carleton.ca<mailto:ma_gagnon at carleton.ca>
Twitter: @MA_Gagnon

Ottawa Centre for Health Law, Policy and Ethics
57 Louis-Pasteur
Ottawa, ON (Canada)
K1N 6N5





-----Original Message-----
From: Ip-health [mailto:ip-health-bounces at lists.keionline.org<mailto:ip-health-bounces at lists.keionline.org>] On Behalf Of Jamie Love
Sent: 17 novembre 2016 02:41
To: Matthew Flynn
Cc: Ip-health
Subject: Re: [Ip-health] Trump and Prescription Drug Prices

Relevant is this from his campaign:

http://www.politico.com/story/2016/01/trump-backs-medicare-negotiating-drug-prices-218215

on, N.H., that Medicare, a huge buyer of prescription drugs, could "save
$300 billion" a year if it negotiated discounts.

"We don't do it," he said. "Why? Because of the drug companies."




On Wed, Nov 16, 2016 at 10:40 PM, Matthew Flynn <matthewflynn2 at gmail.com<mailto:matthewflynn2 at gmail.com>>
wrote:

> "Donald Trump and his congressional allies are making big plans to
> repeal the Affordable Care Act and overhaul other government health programs.
>
> But the president-elect appears to have downgraded plans to act
> aggressively to control rising drug prices, handing the pharmaceutical
> industry an early victory and providing another illustration of the
> influence of lobbyists on the new Trump administration, despite
> Trump’s promise to “drain the swamp” of special interests in Washington."
>
> http://www.latimes.com/business/la-fi-trump-drug-
> prices-20161115-story.html?platform=hootsuite
> _______________________________________________
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>



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