Morning Briefing
Summaries of health policy coverage from major news organizations
With Bill To Allow Medicare To Negotiate Drug Prices, Sherrod Brown Is Latest Possible 2020 Dem To Take Aggressive Pharma Stance
The Hill: Dems Unveil Bill For Medicare To Negotiate Drug Prices
Democrats on Thursday unveiled a bill to allow Medicare to negotiate drug prices, a key part of their agenda to lower pharmaceutical costs. Sen. Sherrod Brown (D-Ohio), who is considering a presidential run, and Rep. Lloyd Doggett (D-Texas), the chairman of the House Ways and Means Health Subcommittee, led the announcement at a press conference on Thursday. (Sullivan, 2/7)
Stat: Potential 2020 Hopeful Sherrod Brown Backs Medicare Drug Negotiation Bill
Brown joined Sen. Tammy Baldwin (D-Wis.) and a slate of Democratic congressmen on a bill that would allow Medicare to negotiate drug prices and strip patent exclusivity from pharmaceutical companies if those negotiations fail. While the bill is not Brown’s first foray into drug pricing policy, it is the strongest indication yet that he, like many other 2020 hopefuls, may begin to take a more aggressive tone on the pharmaceutical industry. “We know the White House looks like a retreat for pharmaceutical executives,” Brown said at a press conference, a swipe at President Trump’s health secretary Alex Azar, a former Eli Lilly executive. (Azar, in fact, has made drug prices a focus of the administration’s health policy.) (Facher, 2/7)
Modern Healthcare: Medicare Part D Drug-Price Negotiation Bill Offered By Democrats
Analysts frequently point out that effective negotiation would require Medicare to be able to refuse to cover certain high-cost medications, as the Veterans Affairs Department can. This proposal from Doggett and Brown has about 100 Democratic co-sponsors and is the first fleshed-out idea from Democrats this Congress for how broad negotiation within Medicare Part D could work mechanically. Generic-drug companies would have to pay royalties to the branded-drug manufacturer if their product is approved. (Luthi, 2/7)
Cleveland Plain Dealer: Sen. Sherrod Brown Proposes Legislation To Reduce Medicare Prescription Drug Prices
Brown also announced that he’s re-introducing previously proposed legislation that would require drug companies to report price increases to the government and justify them. Under the bill he authored with another Democratic presidential aspirant - New York Sen. Kirsten Gillibrand - drug companies that can’t justify their price increases would face financial penalties proportionate to the price spike. (Eaton, 2/7)
Politico: LIberals Worry Pelosi May Pivot Away From A Bold Drug Price Plan
A split between House Democratic leaders and rank-and-file members over how to lower drug prices is threatening the party's efforts tries to make good on one of its biggest campaign promises just weeks into the new congressional session. Some progressive lawmakers and outside groups are concerned that aides to Speaker Nancy Pelosi are proposing to have a third party help decide the price of a drug through binding arbitration — a solution that falls short of the Democrats' 2018 campaign platform that promised direct government negotiations for medicines in Medicare Part D. (Karlin-Smith and Cancryn, 2/7)
Modern Healthcare: PBMs Must Disclose Fees From Drugmakers Under Proposed Rule
The Trump administration is calling for pharmacy benefit managers to disclose to health plans the fees that they get from drug companies for administrative services as part of a bid to boost transparency among PBMs. The fee transparency requirement is part of a proposed rule unveiled last week that also would eliminate anti-kickback statute safe harbor protections for drug rebates, while creating two new ones. The rule proposes to create a safe harbor for discounts provided at the point of sale at pharmacy counters and another for fees that drugmakers pay to PBMs for certain services. (King, 2/7)
The Associated Press: Johnson & Johnson Will List Drug Prices In TV Commercials
Johnson & Johnson said Thursday it will start giving the list price of its prescription drugs in television ads. The company would be the first drugmaker to take that step. The health care giant will begin with its popular blood thinner, Xarelto, said Scott White, head of J&J's North American pharmaceutical marketing. (Johnson, 2/7)
The Hill: Johnson & Johnson To Disclose Drug List Prices In TV Ads
The company will roll out the policy later this quarter, starting with its most frequently prescribed medicine, Xarelto, an oral blood thinner. Xarelto costs $450 to $540 per month without insurance, according to the website GoodRx, which tracks prescription drug prices. Scott White, head of J&J’s North American pharmaceutical marketing, said in a blog post that the ads will include both the list price and potential patient out-of-pocket costs. (Weixel, 2/7)
