By Ricardo Alonso-Zaldivar

Unable to land the big deal with Congress to curb drug costs, President Donald Trump on Friday moved on his own to allow imports of cheaper medicines, along with other limited steps that could have some election-year appeal.

At a White House ceremony, Trump signed four executive orders. One was about importation. The others would direct drugmaker rebates straight to patients, provide insulin and EpiPens at steep discounts to low-income people, and use lower international prices to pay for some Medicare drugs.

Trump cast his directives as far-reaching, but they mostly update earlier administration ideas that have not yet gone into effect.

"I'm unrigging the system that is many decades old," he declared, promising "massive" savings.

Consumers may not notice immediate changes since the orders must be carried out by the federal bureaucracy and could face court challenges.

Democrats, meanwhile, are eager to draw a contrast between Trump and their own sweeping plans to authorize Medicare to negotiate lower prices with pharmaceutical companies, an idea the president had backed as a candidate. A bill by Speaker Nancy Pelosi already passed the House and aligns with presidential candidate Joe Biden's approach.

Oregon Democratic Sen. Ron Wyden, co-author of a bipartisan bill to reduce drug costs, said Trump's orders merely amount to "snake oil," adding that the president "has chosen to take the easy route of empty rhetoric."

Friday's event was definitely not the bill-signing the White House had once hoped for. Trump came into office complaining that pharmaceutical companies were "getting away with murder" and promising to bring them under control. Nearly four years later, things are much the same despite some recent moderation in price increases.

A drive to pass major legislation this year stalled in Congress. Although Trump told Republican senators that lowering prescription prices is "something you have to do," many remain reluctant to use federal authority to force drugmakers to charge less.

Meanwhile, congressional Democrats are calculating that the election will strengthen their hand, and they'll finally be able to enact a law that authorizes Medicare to negotiate prices directly. Neither side in Congress has had an incentive to deal, and the White House has been unable to work Trump's will.

Last year the House did pass Pelosi's Medicare negotiations bill, which would have capped out-of-pocket drug costs for older people and expanded program benefits as well. It had no path forward in the Republican Senate, and the White House calls it unworkable.

But there was an alternative. A bipartisan Senate bill backed by Trump stopped short of giving Medicare bargaining power but would have limited annual price increases and capped costs for older people. The bill passed out of a Senate committee but was never brought to the full body.

"It's not clear why the administration hasn't made a bigger push to line up votes to get a bill through the Senate and a deal with Congress, given strong public support to lower drug costs," said Tricia Neuman, a Medicare expert with the nonpartisan Kaiser Family Foundation.

Americans remain worried about drug costs, with nearly 9 in 10 saying in a recent Gallup-West Health poll that they're concerned the pharmaceutical industry will take advantage of the coronavirus pandemic to raise prices. Another Gallup-West Health survey found 65% saying the Trump administration had made little or no progress limiting increases in prescription drug costs.

It's a particularly important issue for older people, who rely on medications to manage the medical problems associated with advancing age. Trump's support has eroded among the elderly during the haphazard federal response to COVID-19.

Drugmakers remain adamantly opposed to government efforts to curb prices. Trump's administration "has decided to pursue a radical and dangerous policy to set prices based on rates paid in countries that he has labeled as socialist, which will harm patients today and into the future," Stephen Ubl, head of the pharmaceutical lobby, said in a statement.

Trump delayed the effective date of the international pricing order for a month, to see if he can get a deal with industry.

The four orders would:

— Allow states, wholesalers, and pharmacies to import FDA-approved drugs from foreign countries and sell them in the U.S. Trump has long complained that countries where the government sets the price of drugs are taking advantage of American consumers. The order includes a special provision to allow wholesalers and pharmacies to re-import insulin and biological drugs.

— Use the lowest price among other economically advanced countries to set what Medicare pays for certain drugs administered in a doctor's office, including many cancer medications. This would apply to the most expensive medications covered by Medicare's "Part B," which pays for outpatient care. Drugmakers are particularly leery of the approach, since Democrats want to use it more broadly to allow Medicare to directly negotiate prices.

— Direct federally funded community health centers to pass discounts they now get for insulin and EpiPens directly to low-income patients.

— Ensure that rebates drugmakers now pay to benefit managers and insurers get passed directly to patients when they buy a medication. The White House last year withdrew an earlier version of the proposal after the Congressional Budget Office estimated it would cost taxpayers $177 billion over 10 years.

Share:
More In Politics
Apple Doubling Down on $100 Million Racial Equity and Justice Initiative From SXSW 2022
Apple's Racial Equity and Justice Initiative is a $100 million program aimed at combating systemic racism while working to advance racial equity across the country. Alisha Johnson, director of the initiative, joined Cheddar at SXSW to discuss the work being done. "We focused on three critical areas. The first is education. The second is criminal justice reform, and the third is economic empowerment, really looking first in our own supply chain, how can we really increase our spend with Latinx, Hispanic, and indigenous-owned businesses," she said. "And then how can we go further to empower entrepreneurs who have been cut out of access to funding and capital and really help them to get the funding."
Pete Buttigieg Looks for Transportation Tech Solutions at SXSW 2022
Transportation Secretary Pete Buttigieg joined Cheddar's Michelle Castillo from South By Southwest to boost President Biden's bipartisan infrastructure legislation and talk about the big transportation issues of the day, including electric vehicle charging infrastructure and the future of public transit. "It means we have a huge wind at our back delivering on the kinds of transportation solutions that are going to define the 2020's 2030s, 2040s even," he said. "And that's what makes it exciting to come to South by Southwest and talk with some of the people who are following these technologies and ideas the most closely and talk about where we're headed." Buttigieg also touched on the "Don't Say Gay" legislation in Florida, noting that such legislative pushes were likely coming from politicians deflecting from lacking answers to pressing economic concerns, in his opinion.
N.J. Rep. Gottheimer on How His Stablecoin Bill Encourages Innovation
Following President Biden's executive order that could lead toward regulating digital currency in the United States. Representative Josh Gottheimer (D-N.J. 5th District), the congressman responsible for proposing a bill to regulate stablecoins, digital assets backed by fiat currencies, joined Cheddar News to discuss the bill. "I just want to make sure that we're doing everything we can to be helpful to encourage this innovation and growth here in the United States," he said.
Montana Senator Jon Tester on Sarah Bloom Raskin, Inflation & Ukraine
Senator Jon Tester (D-Mont.) joined Cheddar News to talk about a range of topics including Sarah Bloom Raskin's recent withdrawal as a nominee to the Federal Reserve, the impact the Federal Reserve will have on inflation, and the ongoing crisis in Ukraine. "I think it's unfortunate she had to withdraw. I think she was very, very qualified for the position by everything she's done in her past, especially in the area of cyber," he said. "She would have been good to have on the Fed."
Lockdowns in China Threaten Fragile Supply Chain
With a zero-covid policy in China, country officials are imposing lockdowns in the region in an attempt to control the spread. With China being home to about one-third of global manufacturing, these lockdowns are wreaking havoc on the already fragile supply chain, causing disruption to production of phones and cars alike. Suketu Gandhi, Supply Chain Partner at Kearney joined Cheddar's Azia Celestino to discuss.
Markets Open Higher Ahead of Fed Meeting
Markets opened higher this morning as oil prices fall and investors await a decision from the Federal Reserve. Keith Fitz-Gerald, Chief Investment Officer, Fitz-Gerald Group joined Cheddar's Opening Bell to discuss.
Load More