UPDATE: Experts are warning that the recently announced drug deals between the Trump administration and pharmaceutical companies will have minimal impact on Americans’ overall drug spending. These agreements, struck with 14 drugmakers since September 30, primarily benefit cash-paying customers but are unlikely to change costs for insured individuals.
The Trump administration’s efforts include discounts through a new platform called TrumpRx, which offers significant price reductions on selected medications. However, the majority of insured patients, especially those on private insurance or Medicare, are expected to gain more by utilizing their insurance plans rather than opting for the TrumpRx deals.
According to Juliette Cubanski, deputy director at the KFF, “Most people with insurance coverage will continue to be better off using their insurance to obtain medications.” The agreements focus largely on Medicaid patients, who already pay minimal or no copays for prescriptions.
The drugs included in these deals feature notable names such as Merck’s Januvia, Amgen’s Repatha, and Gilead Sciences’ Epclusa. For instance, Epclusa will now cost $2,425 for cash-paying customers via TrumpRx, down from its list price of $24,920. Meanwhile, the weight-loss drugs Wegovy and Zepbound will see their prices drop from around $500 to $250 over the next two years.
However, Art Caplan from NYU Grossman School of Medicine emphasizes that without a comprehensive list of covered drugs, assessing the true impact remains challenging. He notes that many of the drugs priced through these deals are not among the most expensive or have cheaper generic versions already available on the market.
The White House has indicated that some lower prices through TrumpRx will be available “early this year” for Medicaid patients, though a complete list of drugs and expected out-of-pocket savings has yet to be disclosed.
As the health insurance landscape continues to shift, with premiums rising and enhanced Affordable Care Act subsidies expiring, many uninsured or underinsured individuals may find the TrumpRx platform beneficial. However, experts caution that even with discounts, the out-of-pocket costs for medications can still be prohibitive.
Stacie Dusetzina, a health policy professor at Vanderbilt University, states, “Even with lower prices, we’re usually talking about hundreds of dollars per fill.” This reality underscores the ongoing struggle many Americans face in affording necessary medications.
Amidst these developments, the pharmaceutical industry is simultaneously announcing price increases, complicating the impact of Trump’s initiatives. According to research from 3 Axis Advisors, average drug prices have surged by approximately 4%, consistent with previous trends.
Critics, including Richard Frank from the Brookings Institution, question the effectiveness of these agreements, suggesting that they could merely be repackaged discounts that drugmakers had already planned. Frank asserts, “Until we see that there’s actually a real contract in place… it’s hard to say that anything is going to happen.”
As Americans await further details on these drug deals, it’s clear that the potential savings may not reach those most in need. The urgency of the situation is palpable as many grapple with rising healthcare costs and a lack of clarity surrounding the benefits of the TrumpRx initiative.
Stay tuned for further updates as this story develops.
