Morning Briefing
Summaries of health policy coverage from major news organizations
Trump's Promised 'Voluntary Massive Drops' In Drug Prices Haven't Materialized, But Azar Vows Cuts Are Coming
The Wall Street Journal: HHS Secretary Says Several Drug Companies Looking At ‘Substantial’ Price Cuts
Health and Human Services Secretary Alex Azar on Tuesday touted the administration’s plan to combat high drug prices, saying several drug companies are looking at “substantial and material” price cuts, while Democrats said the plan would accomplish little. He said in testimony before the Senate health committee that companies are working with industry middlemen, including pharmacy-benefit managers, to make sure “they’re not discriminated against” for cutting their prices. Middlemen currently have an incentive to provide more favorable coverage to drugs with higher list prices, he said. (Armour and Loftus, 6/12)
Stat: Azar Says HHS Could Change Medicare Drug Rebates Without Congress
The federal government has the authority to modify or eliminate the rebates pharmacy benefit managers get from drug makers on behalf of patients in Medicare prescription drug plans, Health and Human Services Secretary Alex Azar said Tuesday, the clearest indication yet that the administration might exercise that power. “Rebates are allowed under an exception to the anti-kickback statute, and that’s an exception that we believe by regulation we could modify,” Azar told lawmakers. (Swetlitz and Mershon, 6/12)
Modern Healthcare: Azar Blasts Proposal For Medicare To Negotiate Drug Prices
In a Senate Committee on Health, Education Labor & Pensions (HELP) hearing, Democratic lawmakers suggested drafting a bill allowing the HHS secretary to tell drugmakers it will pay the lowest of prices they are now offering to another country. For instance, if the UK is paying $30,000 for a drug and the U.S. is paying $150,000 for the same product, HHS could say it too would only pay the UK price. But former Eli Lilly executive Azar said drugmakers would take action to protect their U.S. profits if the CMS starts negotiating drug prices. The proposal wasn't part of President Donald Trump's recently unveiled drug pricing blueprint. (Dickson, 6/12)
Bloomberg: Trump Health Chief Renews Call To End Key Drug-Pricing Tactic
Senator Lamar Alexander, chairman of committee, has questioned the need for rebates because they make it difficult to track true drug spending. “I understand the administration may need some additional authority to modify or end the practice of rebates,” Alexander, a Tennessee Republican, said in his opening statement. (Edney, 6/12)
Politico: Trump’s Health Chief Suggests ‘Massive’ Drug Price Cuts Not Imminent
Azar claimed pharmacy benefits managers and drug distributors have held up efforts to reduce prices, and he blamed the drug pricing system for incentivizing high list prices. Drug companies are worried that if they cut list prices, these drug supply chain middlemen will no longer prioritize their products, Azar said. That’s because these companies sometimes make more money when a drug’s list price is higher. (Karlin-Smith, 6/12)
The Hill: Warren Presses Health Chief Over Trump's Promise Of Drug Price Cuts
Sen. Elizabeth Warren (D-Mass.) pressed Health and Human Services (HHS) Secretary Alex Azar on Tuesday about why no drug companies have announced price decreases despite President Trump saying they would soon. Warren focused on Trump’s statement at the end of May that "in two weeks" drug companies would "announce voluntary massive drops in prices." The two-week mark from that statement is this Wednesday. (Sullivan, 6/12)
Prescription Drug Watch: For more news on high drug costs, check out our weekly roundup of news coverage and perspectives of the issue.
