Biden Targets Big Pharma’s Drug Prices in Union Address
TL/DR –
During his State of the Union address, President Joe Biden announced plans to lower prescription drug prices, including expanding Medicare price negotiations to at least 50 drugs per year and requiring pharmaceutical companies pay rebates to Medicare if their price increases exceed inflation. Drugmakers and other stakeholders, however, have voiced objections to Biden’s proposals, arguing that they could create access barriers for patients, stifle research and development, and disincentivize biomedical innovation. The article also noted that former president Donald Trump has not focused on drug pricing in his 2024 campaign as he did in past elections, raising questions about what his approach might be if he wins the presidency.
Biden’s Stand against High Prescription Drug Prices
Image: American flag in front of the Capitol building. Credit: Mesut Dogan/iStock
The 2024 presidential race is underway, marked by President Joe Biden’s State of the Union address targeting Big Pharma and the high prescription drug prices in the U.S.
Biden pledged to end exorbitant prescription drug pricing, invoking the Inflation Reduction Act (IRA) to boost Medicare price negotiations from 20 to at least 50 drugs per year. The president is also pushing for pharma companies to pay rebates to Medicare if their price hikes for certain drugs surpass inflation, according to a White House fact sheet.
However, the Pharmaceutical Research and Manufacturers of America (PhRMA) expressed concerns over the IRA’s negative impact on patient access and new drug development. Small molecule development investment has begun to decline due to these policies, according to PhRMA.
The Ongoing Battle Over Drug Prices
Major drugmakers are suing to block the IRA’s Medicare Drug Price Negotiation Program. A Trump-appointed federal judge recently dismissed AstraZeneca’s lawsuit over the program, insisting drug manufacturers cannot dictate the government’s purchase prices.
Many, including patient advocacy groups and the venture capital community, are also critical of the IRA and Biden’s new proposals. Critics argue that these price controls could discourage new drug R&D and threaten U.S. dominance in biopharma.
The Trump Factor
With the 2024 presidential election underway, Biden’s clash with Big Pharma was inevitable. The question remains how a potential Trump presidency might handle drug pricing. While Trump signed orders aimed at reducing drug prices during his term, he has yet to make it a focus of his 2024 campaign. The direction of Medicare drug pricing negotiations under a new administration remains to be seen as the election year progresses.
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