During his State of the Union address Tuesday, President Donald Trump called on Congress to pass legislation that would help reduce the high cost of prescription drugs and emphasized the progress his administration has already made in lowering the prices.
“Already, as a result of my administration’s efforts, in 2018 drug prices experienced their single largest decline in 46 years,” Trump said. “But we must do more. It’s unacceptable that Americans pay vastly more than people in other countries for the exact same drugs, often made in the exact same place. This is wrong, this is unfair, and together we will stop it. And we will stop it fast. I am asking Congress to pass legislation that finally takes on the problem of global freeloading and delivers fairness and price transparency for American patients.”
The largest drug price decline in 46 years Trump is referencing comes from the consumer price index for prescription and nonprescription drugs. While these numbers are right, they can also be misleading. After the speech last night, Stat shared a recent study that shows the consumer price index does not incorporate changing from brand to generic drugs and the increased reliance on third party insurance plans into their measurements. NPR also shared a study sponsored by hospital trade groups that found that the amount of money hospitals spend on drugs rose 19 percent from 2015 to 2017.
Art Caplan, the Drs. William F and Virginia Connolly Mitty Chair, and director of the Division of Medical Ethics at NYU Langone Medical Center, told Boston Public Radio Wednesday that Trump is wrong about the decline in drug prices during his administration.
“Drug prices have continued to escalate, the increases have been smaller than they were in previous years. They continue to go up and up, and what’s worse, from the point of view from patients, the amount they are responsible for goes up and up. It is not just a question of what is the price, but it is how much is the deductible that you are paying and that has been ever increasing,” Caplan said.
Caplan does not believe the current proposals to lower drug prices, which he said focus on going after the middlemen of the pharmaceutical industry, will work. For significant change to be made, Caplan suggested that the government negotiate the prices directly with the companies.
“That’s what every other country does,” Caplan said. “We could do it with the VA, Medicare, and Medicaid too.”