Drug Price Legislation Faces Challenges

In May we released an article about a proposed rule coming down from CMS regarding drug prices in advertising. In June we noted that drug companies were fighting this rule in court. This month we see the setbacks and challenges the Trump Administration continue to face in lowering drug prices for the everyday American.

On July 8, federal courts ruled that the Department of Health and Human Services (HHS) did not have the authority to “mandate that drug makers disclose list prices in TV ads.” The judge states that Congress must first give HHS permission.

While there are other pieces of legislation in the works to reduce patient’s healthcare costs, lowering drug prices has been a top promise since the Trump campaign trail. They are still working to increase patient’s access to hospital pricing to be able to better “shop” for their non-emergent healthcare needs.

Trump has likewise considered an Executive Order to mandate drug prices not be higher than the charge from the country paying the lowest price for the drug in question. Undoubtedly, this would be another Executive Order to face the federal courts before being executed, not unlike 70 of 117 total orders put in place by the Trump administration since 2017.

While there has been a real and progressive effort to reduce healthcare costs by this administration, the biggest roadblock it will continue to face is the pharmaceutical companies in the courts, who tend to pass the rules back to Congress, where many of these get lost in bulk of bills both sides are trying to pass through this year.


Sources: https://www.modernhealthcare.com/government/trump-administration-suffers-setbacks-drug-price-transparency-efforts

Sources: https://www.washingtonpost.com/graphics/2019/politics/trump-overruled/?noredirect=on&utm_term=.17e058643eae

Sources: https://en.wikipedia.org/wiki/List_of_United_States_federal_executive_orders#Donald_Trump_(2017%E2%80%93present)

Donna White

By Donna White, Principal Consultant and Owner of Legacy Consulting Services and Legacy Billing Solutions in Montgomery, Alabama.

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