John Barkett, a healthcare policy expert and former senior advisor on the White House Domestic Policy Council, dives into the pivotal role of the 2024 presidential election in shaping drug pricing. He contrasts Kamala Harris and Donald Trump's approaches to reducing drug costs, emphasizing how the Inflation Reduction Act might influence their strategies. The discussion also covers Medicare negotiations, the historical context of drug pricing reforms, and Project 2025's implications, all underscoring the complex intersection of policy, politics, and pharmaceutical innovation.
Vice President Kamala Harris aims to enhance drug pricing reforms through the Inflation Reduction Act, particularly for Medicare and potentially beyond.
Former President Donald Trump's previous policies and the Project 2025 outline signify ongoing complexity and uncertainty surrounding future drug pricing reform.
Deep dives
Harris's Approach to Drug Pricing Reform
Vice President Kamala Harris aims to build on the drug pricing initiatives established by the Biden-Harris administration, particularly through the Inflation Reduction Act (IRA). This act includes provisions to lower drug prices for Medicare beneficiaries by allowing some level of negotiation on drug prices. For instance, it has capped out-of-pocket costs for insulin at $35, significantly easing financial burdens. Additionally, Harris has expressed a desire to expand these negotiations beyond Medicare, indicating a potential drive to lower drug costs for individuals with commercial insurance.
Trump's Historical Context on Drug Pricing
Former President Donald Trump has long highlighted drug pricing as an essential issue, famously stating that the pharmaceutical industry was 'getting away with murder.' His administration attempted several reforms, including a plan to tie U.S. drug prices to those in other countries, which was quickly halted due to legal challenges. Although he has distanced himself from certain proposals like the Most Favored Nation model since his campaign, there remains uncertainty about his actual stance on these reforms post-election. Overall, Trump's prior initiatives have set a precedent that has pushed drug pricing into the political spotlight, making it a topic that future legislation cannot easily ignore.
The Role of Project 2025 in Future Drug Policy
Project 2025 represents a comprehensive outline of potential policies that may be pursued by Trump if he returns to office, including aspects that could impact drug pricing reform. Despite his disavowal of the project, it encapsulates policy recommendations from various experts and provides a repository of ideas for future administration. Notably, it discusses restructuring drug subsidies and potentially allowing foreign-approved drugs to bypass FDA approval, signaling a shift in regulatory approaches. The document’s thoroughness indicates that it could be a key reference point for a Trump administration's actions on drug pricing and healthcare overall.
As the 2024 U.S. presidential election nears, the choice between Democratic nominee Vice President Kamala Harris and Republican nominee former President Donald Trump will shape the future of drug pricing policy.
While both candidates have pledged to reduce drug costs, their approaches are likely to differ significantly.
In this week's episode of "The Top Line," Fierce Pharma's Zoey Becker chats with John Barkett, managing director of BRG’s healthcare transactions and strategy practice and former senior policy advisor for healthcare delivery system reform on the White House Domestic Policy Council, about what we can expect from each candidate's potential presidency and how the Inflation Reduction Act could play a pivotal role.