U.S. President Donald Trump’s administration is set to focus on lowering healthcare costs for Americans, including prescription drug prices. The pharmaceutical industry is hopeful that Trump will take a more pro-business approach, focusing on cracking down on middlemen called pharmacy benefit managers (PBMs) rather than the prices charged by the companies themselves.
Drugmakers are particularly eager to see changes to the Inflation Reduction Act, which includes provisions aimed at making medicines more affordable, but which the industry views as a threat to innovation and profits. Under Trump, the industry may also see a shift in the focus from price negotiations with drugmakers to PBM reform.
Many executives are optimistic about working with Trump, who some describe as willing to hear out their grievances. However, there are also uncertainties, such as the appointment of Robert F. Kennedy Jr. to lead the Department of Health and Human Services, which could potentially deter more people from taking recommended vaccines.
Pharmacy benefit manager reform is a top priority for drugmakers, who argue that PBMs overcharge insurance plans for medication rebates, underpay pharmacies for dispensing prescriptions, and fail to pass on savings to patients. The industry is “optimistic” that PBM reform will be implemented this year, with Trump, lawmakers, and lawmakers from both parties concerned about their practices.
Executives also hope to see changes to the Medicare drug price negotiations, which were a key part of the Inflation Reduction Act. Trump has signaled that he will target PBMs, and some experts predict that he may revive a proposal to eliminate the so-called “safe harbor” for rebates, which would ensure that any discounts from drugmakers would directly reach patients.
The pharmaceutical industry is also fighting the law in a flurry of legal challenges, arguing that it will slash their profits, hinder investments in research and development, and result in unintended consequences for patients, such as fewer treatments and higher premiums.
