In 2015, Americans spent $1,162 per capita on prescription drugs — by far the most of any country. According to Sarah Kliff of Vox.com, it is easy to see why: A prescription for Humira, a popular injectable medication used to treat conditions such as arthritis and psoriasis, costs $822 in Switzerland, $1,362 in the United Kingdom, and $2,669 in the United States.
While exorbitant drug prices are headache-inducing for U.S. patients, the solutions that President Donald Trump announced Friday appear to be more of a placebo than a cure. Trump promised “the most sweeping action in history to lower the price of prescription drugs for the American people,” yet his proposal ignored actions that could lead to true reform.
Most notably, he eschewed a frequently stated campaign promise of allowing the federal government to negotiate drug prices on behalf Medicare recipients. Covering 60 million seniors and Americans with disabilities, Medicare is the largest buyer of prescription drugs; its purchasing power could have a large impact on prices, but federal law prohibits negotiations with pharmaceutical companies.
Trump also failed to mention the possibility of allowing Americans to import medication from other nations that carefully control drug quality, and he ignored bipartisan legislation in Congress that would get generic drugs to market faster. Both of those steps would provide more relief for American consumers than the president’s tepid proposals.
Undoubtedly, the federal government must be cautious about intervening in the marketplace for prescription drugs. Pharmaceutical company profits drive innovation that has led to groundbreaking medications benefiting millions around the world. And companies must be allowed to reap the windfall of a new drug that costs millions of dollars for development and approval. The promise of profit attracts investment that results in new advancements.
But while candidate Trump shared a populist message that decried a pharmaceutical industry “getting away with murder,” President Trump last week acquiesced to that industry by providing little more than toothless proposals. Biotech stock shares increased in price following the announcement — an indication of the president’s reduced zeal for taking on pharmaceutical companies.
Trump deserves credit for bringing attention to the issue and advancing the conversation, but the American public needs relief from quickly escalating prices rather than simplistic rhetoric. Locally, the Washington Prescription Drug Program (https://tinyurl.com/y8lk9h5j) provides information and assistance for residents in navigating the market.
One key proposal from Trump is a desire to persuade other countries to increase their prices. Many nations with centralized health care have negotiated lower prices for specific drugs, and Trump described this as “free riding” off the ingenuity of American companies. It is an idea that warrants exploration, but it is not clear whether other countries can be convinced to agree or whether pharmaceutical companies would then lower prices in this country.
Trump also took aim at contractual clauses that prevent pharmacists from informing patients of less-expensive alternatives. “This is a total rip-off, and we are ending it,” he said.
The president’s proposals remain a work in progress and should serve as a call to action for Congress. The causes of high drug prices in the United States are complex (https://tinyurl.com/yb6amhxy) and are beyond reach of simple solutions, but they must be addressed.
