Examining President Trump’s Deal-Based Approach to Health Reform
TL/DR –
President Trump’s health reform consists of one-off deals with the health care industry, rather than a comprehensive plan. Three major deals have occurred so far, with the most notable involving drug companies lowering prices for Medicaid beneficiaries, and the administration announcing a voluntary effort with large health insurance companies to expedite and simplify prior authorization review. However, critics argue these deals do not offset the significant cuts in Medicaid and the Affordable Care Act, nor do they address the long-term profit motivations of the healthcare companies involved.
Trump’s Unique Approach to Health Policy: Transactional Deals
President Trump is adopting a unique strategy to healthcare reform: a series of individual deals with the healthcare industry. These deals, which rely on presidential pressure and voluntary industry action, resemble real estate or foreign policy transactions more than traditional health reform plans.
While these plans don’t address comprehensive health reform, they symbolize action to voters on relevant issues, generate news attention, and can positively impact aspects like drug prices. However, questions about their sustainability persist.
There have been three major deals thus far, with a fourth, potentially larger deal being discussed.
The initial set of deals involved drug companies to lower prices for Medicaid beneficiaries, aligning prices with those paid by other rich nations in exchange for reported tariff relief. Trump also made deals with Eli Lilly and Novo Nordisk to reduce GLP-1 prices for some patients and sell the drugs to others through TrumpRx.
The administration also partnered with major health insurance companies to streamline prior authorization review. However, public awareness and confidence in this move is low.
Another initiative under CMS involves a partnership with 60+ providers, payers, and software companies to enhance electronic patient information sharing.
Prior to the holidays, Trump discussed the potential for a deal with health insurance companies to reduce their premiums.
The administration’s approach to these deals involves negotiation, simplicity, and heavy promotion. Any concessions from the insurance industry provide a political win for Trump, gain news coverage, and give the impression of addressing affordability concerns.
While these deals may have positive disruption, they cannot offset the Medicaid cuts and premium increases that will impact Marketplace enrollees if the enhanced tax credits are not extended. Regardless, Trump’s focus remains on striking these one-off deals as a part of his “health reform”.
For more insights, view all of Drew’s Beyond the Data Columns.
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