Health Care

White House kills drug rebate proposal, healthcare stocks rally premarket

White House kills drug rebate proposal, healthcare stocks rally premarket”

After two setbacks this week, President Donald Trump is now focusing his drive to curb drug costs on congressional efforts aimed at helping people on Medicare and younger generations covered by workplace plans.

The news led to an immediate uptick in stock prices for PBMs: CVS shares were up 7% in early trading, and Express Scripts (ESRX) shares increased by 10%.

Pharmaceutical company shares fell, with Merck & Co, Bristol-Myers Squibb Co and Pfizer Inc all off more than 3%. "Pharma and biotech seem to have drawn the ire of the administration more recently", said Coldwell, noting the industry's successful legal challenge of a rule that would have required drugmakers to include list prices in TV ads for their medicines.

The Trump administration abandoned a controversial proposal that would have overhauled the rebate system, according to The Hill.

It was a defeat for the pharmaceutical industry, which had lobbied to promote rebates.

"Shelving the rebate reform initiative, which pharma strongly supported, feels like payback", he added. Dick Durbin, the chamber's second-ranking Democrat, are pushing legislation that would grant the government such powers.

At this juncture, the administration is moving forward with its plan to tie Medicare reimbursement for drugs to the lowest prices paid elsewhere.

The White House first floated the idea of ending the rebates a year ago as part of a drug pricing "blueprint" aimed at bringing down costs.

The rule would have forced companies like Cigna and CVS to either forgo these discounts or pass them onto Medicare patients enrolled in their health insurance plans and drug plans. "Any solution should start with addressing drug prices". Instead, drug companies would have been encouraged to pass the discounts directly to patients at the pharmacy counter.

President Donald Trump speaks about kidney health at the Ronald Reagan Building and International Trade Center, accompanied by Health and Human Services Secretary Alex Azar, left, Wednesday, July 10, 2019, in Washington. Drugmakers prefer that to other approaches lawmakers are considering. The pushback grew after the nonpartisan Congressional Budget Office estimated the plan would have little impact on manufacturer prices and cost Medicare $177 billion over 10 years by leading to higher premiums subsidized by taxpayers. The CBO also said that it was likely that drugmakers would not cut their prices because of the rule. Analysts also questioned how quickly and smoothly the program could have been rolled out.

According to a report by Politico, the administration has now chose to withdraw the proposed rule, first put forward in February 2019 and championed by HHS Secretary Alex Azar, who has called the use of rebates in the United States "an absolutely silly system".

"Based on careful analysis and thorough consideration, the President has chose to withdraw the rebate rule", said Judd Deere, a White House spokesman. While Azar favored the rule, Grogan had reportedly opposed it over cost concerns.

"The Trump administration is encouraged by continuing bipartisan conversations about legislation to reduce outrageous drug costs imposed on the American people, and President Trump will consider using any and all tools to ensure that prescription drug costs will continue to decline".



Like this

loading...
loading...

Latest


11 July 2019
McIlroy confident home comforts will aid his Open bid
The tournament gets underway in Northern Ireland on July 18 at the course where McIlroy set the record in 2005 with a round of 61.

11 July 2019
Bulk Pig Ears For Animals Might Contain Salmonella
Most people infected with salmonella develop diarrhea, fever and stomach cramps 12 to 72 hours after eating contaminated food. Importers, suppliers, and distributors should not sell Cavi brand papayas , which are distributed by Agroson's LLC.

11 July 2019
Bruins, Danton Heinen set August 3 arbitration date for new deal
That should be more than enough to bring back defensemen Brandon Carlo and Charlie McAvoy , who are both restricted free agents. The 6-foot-1, 188-pound forward also chipped in two goals and six assists in 24 postseason games.

11 July 2019
Couple claims clinic implanted their embryo in wrong woman
The Manukyans, who were married in 2007, said that in March 2011, an embryo transfer had resulted in the birth of their daughter. The couple said they hired lawyers and flew to NY , where they say they learned that Y.Z. and A.P. wanted to keep both babies.

11 July 2019
Trump's order aims to revamp kidney care
About 200,000 Medicare patients are expected to take part in the models, the Department of Health and Human Services said . Today, about 11% of patients in kidney failure get at-home dialysis and an additional 3 percent get an early transplant.

11 July 2019
Kanye West’s Yeezy brand to make over R20 billion in 2019
Swift last topped Forbes' Celebrity 100 list in 2016, when her pre-tax earnings were calculated to be $170 million (£136 million). The music producer who owns a matte-black Lamborghini SUV, describes his foot line as "the Lamborghini of shoes".

11 July 2019
Entire Antarctic ice sheet melting at an alarming rate
The rates have doubled, singling out the Thwaites Glacier as a significant contributor to rising sea levels . Earlier this year, NASA added fuel to the fire by discovering a huge void lurking beneath Thwaites Glacier.

11 July 2019
Cantrust: non-compliant with Canada cannabis regulations
It will be determined whether the cannabis meets the regulatory standards before it is allowed into the market. Jefferies analyst Ryan Tomkins said the company had been disappointing in terms of its execution.

11 July 2019
7-foot-6 Tacko Fall is an NBA Summer League sensation
Boston originally selected Yabusele 16th overall in the 2016 NBA Draft. It's just the more realistic avenue for Danny Ainge at this point.

11 July 2019
Italian speedster Viviani nabs 1st Tour stage win
Viviani has five Giro d'Italia and three Vuelta a Espana stage wins to his name, but he had to wait for one in Le Tour. If anyone understands the sport, you watch the sport, there is a 30-metre gap.