Currently Viewing:
The Academy of Managed Care Pharmacy (AMCP) Nexus 2018
Drug Market to See More Competition, Launch of Biosimilars in 2019
October 23, 2018
Dr Aimee Tharaldson Outlines Current Key Market Trends in Specialty Pharmacy
October 23, 2018
Dr Jane F. Barlow: How Curative, High-Cost Therapies Bring Challenges to the Reimbursement Landscape
October 23, 2018
Law to Curb Opioid Abuse Will Have Many Managed Care Priorities, Experts Say
October 23, 2018
Analysis Finds HIV Therapy Biktarvy Associated With Cost Savings Compared With Most Regimens
October 24, 2018
Dr Christopher Diehl Explains the Pharmacist's Role in Value-Based Models
October 24, 2018
Dr Jennifer Graff on Using Real-World Evidence to Deliver High-Quality Care
October 24, 2018
CMS Audits Give View Into How Well Health Plans Deliver Medicare Programs
October 24, 2018
Massachusetts Medicaid Finds CAR T-Cell Payment Solution While Waiting on CMS
October 25, 2018
Dan Mendelson: Healthcare Policy Changes Avalere Health Is Paying Attention To
October 25, 2018
Dr Kibum Kim on Precision Medicine in Managed Care
October 25, 2018
From Pathways to Pharmacy: Sharing Approaches to Value-Based Care
October 25, 2018
Dr Jane F. Barlow on How Curative, High-Cost Therapies Will Affect Patient OOP Costs
November 09, 2018
Dr Aimee Tharaldson: Recently Approved Specialty Drugs, Upcoming Approvals to Watch For
November 13, 2018
Dan Mendelson Discusses How Mergers and Acquisitions Are Affecting the Market
November 14, 2018
Currently Reading
Dan Mendelson on the Trump Administration's Efforts to Lower Drug Prices
November 22, 2018
Dan Mendelson's Expectations for Cross-Sector Mergers Like CVS, Aetna
November 28, 2018
Specialty Drug Approvals Dr Aimee Tharaldson is Looking Out for in 2019
November 29, 2018
Dan Mendelson on the Shift to Value-Based Care and Prescribing Patterns
December 22, 2018

Dan Mendelson on the Trump Administration's Efforts to Lower Drug Prices

This administration is very focused on pharmaceutical pricing, explained Dan Mendelson, MPP, founder, Avalere Health.

This administration is very focused on pharmaceutical pricing, explained Dan Mendelson, MPP, founder, Avalere Health.


Do you think efforts from the Trump administration, such as targeting PBM rebates and other policies outlines in the blueprint, are likely to lower drug prices?

This administration is very focused on pharmaceutical pricing. They’re talking about it a lot, it’s setting a cadence for a lot of the internal meetings. I was just on a panel yesterday with a very senior White House official who told me that every single day, they’re meeting on drug costs. So, it is something they’re certainly very focused on. And you’ll see the president coming into the midterm elections focused on it more. He’ll start to talk about it more, because there are really 2 healthcare issues that are driving this midterm election. The first is pre-existing condition, and the second is the cost of prescriptions drugs.

Then to the question of whether what they are doing is going to be effective—I kind of made the argument that they’re going to be talking about it a lot, so are they actually going to be effective in reducing costs? I think in some cases they will be. They have sped up the approval of generic drugs, and as such, they will reduce costs in those categories when they have done that. That’s legitimate.

Some of the other things will take longer to filter through the system. For example, changing the safe harbors that will enable outcomes-based contracting. That’s important, but it’s not going to overnight turn the tide and reduce drug costs. And then I think that the other reality is that we are in a market today where increasingly there are orphan drugs, super orphan drugs, personalized therapies, durable therapies that affect the genome as well as cell structure that are coming on to the market, and they’re going to be very expensive. They will cost anywhere from $250,000 per application to millions of dollars per application.

So, at the same time that the administration is focused on reducing the costs of the rest of the market, these eye-popping prices are going to be coming in. So, I do think that their task is complex, because they will not want to slow the pace of innovation and they will want to move things along, but then on the other side, they will want to be able to prove to consumers that they are doing something about the issue that consumers are facing.

Copyright AJMC 2006-2020 Clinical Care Targeted Communications Group, LLC. All Rights Reserved.
Welcome the the new and improved, the premier managed market network. Tell us about yourself so that we can serve you better.
Sign Up