[Ip-health] Trump and Prescription Drug Prices

Shanna Devine sdevine at citizen.org
Fri Nov 18 10:23:44 PST 2016


Hi all, 

We pulled together a one-pager on Trump's access to medicines statements (and a few other relevant statements) during the campaign and as president-elect. It is copied below.

Hope folks find it useful, although it overlaps with some points that have already been shared on this list. 

Thanks, 
Shanna

Shanna Devine
Access to Medicines Lobbyist
Public Citizen
1600 20th Street NW
Washington, D.C. 20009
ph: (202) 588-7711 
www.citizen.org/access
---

Re: Donald Trump Noteworthy Campaign and President-Elect Positions on Access to Medicines

-	Donald Trump has supported several measures during his campaign and as President-elect that advance access to medicines, including price transparency, greater healthcare R&D, and safe drug importation and Medicare drug negotiations to increase competition and lower prices. 
-	 “The Administration’s goal will be to create a patient-centered healthcare system that promotes choice, quality and affordability with health insurance and healthcare”.  
-	According to campaign statements by Trump, Medicare could "save $300 billion" a year by getting discounts as the biggest buyer of prescription drugs. When asked why Medicare doesn’t negotiate drug prices, he responded "We don't do it. Why? Because of the drug companies."   Trump added "When it comes time to negotiate the cost of drugs, we are going to negotiate like crazy". 
-	According to Trump’s official campaign position on Healthcare Reform, he would “Require price transparency from all healthcare providers, especially doctors and healthcare organizations like clinics and hospitals. Individuals should be able to shop to find the best prices for procedures, exams or any other medical-related procedure.” 
-	According to Trump’s campaign position on Healthcare Reform, he would “Remove barriers to entry into free markets for drug providers that offer safe, reliable and cheaper products. Congress will need the courage to step away from the special interests and do what is right for America. Though the pharmaceutical industry is in the private sector, drug companies provide a public service. Allowing consumers access to imported, safe and dependable drugs from overseas will bring more options to consumers.” 
-	Trump’s campaign position on Healthcare Reform asserted that his proposals “are simply a place to start. There are other reforms that might be considered if they serve to lower costs, remove uncertainty and provide financial security for all Americans. And we must also take actions in other policy areas to lower healthcare costs and burdens … [including] eliminating fraud and waste”. 
-	According to the President-elect’s transition website, “With the assistance of Congress and working with the States, as appropriate, the Administration will act to:
o	Protect individual conscience in healthcare
o	Protect innocent human life from conception to natural death, including the most defenseless and those Americans with disabilities
o	Advance research and development in healthcare
o	Reform the Food and Drug Administration, to put greater focus on the need of patients for new and innovative medical products
o	Modernize Medicare, so that it will be ready for the challenges with the coming retirement of the Baby Boom generation – and beyond”

-----Original Message-----
From: Ip-health [mailto:ip-health-bounces at lists.keionline.org] On Behalf Of Ma Gagnon
Sent: Friday, November 18, 2016 1:00 PM
To: Jamie Love; Ruth Lopert
Cc: Ip-health; Matthew Flynn
Subject: Re: [Ip-health] Trump and Prescription Drug Prices

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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>



--
James Love.  Knowledge Ecology International http://www.keionline.org/donate.html
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--
James Love.  Knowledge Ecology International http://www.keionline.org/donate.html
KEI DC tel: +1.202.332.2670, US Mobile: +1.202.361.3040, Geneva Mobile: +41.76.413.6584, twitter.com/jamie_love<http://twitter.com/jamie_love>
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