UPDATE: Experts are raising alarms about the limited impact of President Donald Trump’s recent drug deals on American prescription costs. These agreements, made through TrumpRx, provide discounts primarily for cash-paying customers, but are unlikely to bring significant savings for most insured individuals.
The Trump administration has struck deals with 14 pharmaceutical companies since September 30, 2023, aiming to lower drug prices by tying U.S. costs to those in other wealthy nations. However, most beneficiaries will still find it more economical to use their insurance for medications, according to health policy experts.
While the agreements include substantial discounts for out-of-pocket purchases, the majority of insured patients will see no benefit from the program. Juliette Cubanski, deputy director of the program on Medicare Policy at KFF, stated, “Generally speaking, most people with insurance coverage will continue to be better off using their insurance to obtain medications rather than purchasing through the TrumpRx direct-to-consumer portal.”
The deals are particularly focused on Medicaid recipients, who already pay minimal out-of-pocket costs for medications. Some notable drugs included in the deals are Merck’s diabetes medication Januvia and Gilead Sciences’ hepatitis C treatment Epclusa, which will drop to $2,425 from a staggering $24,920 for cash customers.
However, the full list of drugs affected remains undisclosed, leaving many experts skeptical. Richard Frank from the Brookings Institution expressed doubt, saying, “Until we see that there’s actually a real contract in place… it’s hard to say that anything is going to happen.”
The discounts could be meaningful for those without insurance or those on high-deductible plans, but experts like Stacie Dusetzina from Vanderbilt University caution that even with price reductions, many patients will still face significant out-of-pocket expenses. “A 50% discount on a $500 drug is nothing to sneeze at,” she noted, “but a lot of people will still struggle to pay $250 out of pocket on a monthly basis.”
In an official statement, a White House spokesperson indicated that some lower prices would be available on TrumpRx “early this year” for Medicaid recipients, yet specifics on expected savings remain unclear.
As the deals unfold, it’s critical to note that drug prices have been on the rise, with average increases hovering around 4% according to research from 3 Axis Advisors. This trend raises further questions about the effectiveness of Trump’s agreements amidst ongoing price hikes by drug manufacturers.
The ongoing debate highlights a pressing issue: as health insurance premiums surge, affordability of medications remains a significant concern for many Americans. Experts emphasize that without stable insurance coverage, even discounted drug prices may remain out of reach.
With the health insurance landscape continually evolving, the focus now shifts to how these deals will be executed and whether they will provide any real relief for the millions of Americans struggling with high medication costs.
Stay tuned for more updates as this story develops.
