Trump Eyes Drug-Price Cuts After His Health-Care Record Is Attacked - (Bloomberg via NewsPoints Desk)

  • People familiar with the matter said that US President Donald Trump is considering executive action to cut drug prices ahead of the 2020 election, reported Bloomberg.

  • If the action goes foreward, Trump would force drug companies to accept lower payments from Medicare for treatments administered in doctors' offices, such as Bristol-Myers Squibb's Opdivo for cancer and Regeneron Pharmaceuticals' Eylea for eye conditions, the news source said.

  • The rule would apply to certain drugs bought by the Part B section of Medicare, the news source added.

  • However, the pharmaceutical industry warns the move could damage its profits and take away incentives to invent new treatments. "The president rails against socialist medicine, but he's willing to import socialist pricing models into the US," said James Greenwood, head of the Biotechnology Innovation Organization.

  • Meanwhile, Trump's budget proposal, issued earlier this week, projects savings due to "comprehensive drug pricing reform" totaling $36.5 billion between 2021 and 2025, but does not explain how.

  • The administration "eased up on specifics" of drug price cuts in the budget in order to give Congress more latitude, according to Office of Management and Budget acting director Russ Vought.

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