President Donald Trump is targeting the pharmaceutical industry as a way to help finance his tax cut plans, pressing House Republicans to force drugmakers to accept lower prices on drugs covered by Medicaid, Bloomberg reported May 2.
The White House confirmed in an email to the news outlet that Trump asked GOP leaders to mandate that Medicaid get the lowest price for drugs.
Here are four more notes:
- The pharmaceutical industry has fought efforts to lower prices paid by federal programs. Alix Schriver, a PhRMA spokesperson, told Bloomberg, “Government price setting in any form is bad for American patients. … At a time when we are facing growing competition from China, policymakers should focus on fixing the flaws in the U.S. system, not importing failed policies from abroad.”
- It is uncertain how much President Trump’s proposal would save considering Medicaid already receives mandatory discounts on most prescription drugs, and experts argue the program is already paying some of the lowest prices in the U.S. Kristi Martin, a former CMS official, told the news outlet, “There’s every reason to believe Medicaid is getting an incredible price for most drugs.”
- As part of a 2025 fiscal budget resolution, Congress is weighing up to $880 billion in cuts to federal healthcare spending over the next 10 years, a target experts say is not possible without significant cuts to Medicaid. Those reductions are expected to be a headwind for hospitals, where 26% of inpatient visits are paid for by Medicaid, according to a KFF Health News report.
- Even if the idea gains traction, turning it into a law would not be simple. Lawmakers would still need to draft new legislation and get it reviewed by budget analysts in time for inclusion in a summer spending package.
