Trump Promises Lower Drug Prices, but Drops Populist Solutions

Although President Trump promised last week to "bring soaring drug prices back down to earth" by promoting competition among drug companies, he has jettisoned the populist proposals of his presidential campaign, reports the New York Times . Trump has chosen not to have the federal government directly negotiate lower drug costs for Medicare, nor to permit American consumers to import low-cost medicines from overseas. Instead, private firms would be given the means to negotiate better deals on behalf of consumers, insurers, and employers. The White House's plan calls for reducing out-of-pocket costs for Medicare beneficiaries by requiring prescription drug plans to pass on some of the discounts and rebates they get from drug manufacturers. Medicare officials say there concurrently could be a modest rise in premiums for Medicare drug coverage. Health policy experts welcome this policy because it reduces the burden on persons with serious chronic illnesses and diffuses the expense of needed medications across the entire insured population. However, Democrats warn Trump's plan comes up significantly short of what is needed, especially compared to the populist promises he made during the 2016 campaign. "The president is apparently abandoning his campaign promise to authorize Medicare to negotiate directly with drug companies to lower prices," says Rep. Elijah E. Cummings (D-Md.).