White House unveils plan to reduce drug prices to protect consumers

*Supporters of the provision note the US Government would save billions of Dollars on drug costs for seniors, while the population at large would also experience lower drug costs  

Isola Moses | ConsumerConnect

In a move to enable the United States Government to save billions of Dollars on drug costs for seniors while favouring the consumers at large with comparatively lower prices, the White House has launched an ambitious plan to lower prescription drug prices.

ConsumerConnect learnt the issue to protect consumers in the Medicare segment of the health sector of the country’s economy has gained support in both the Republicans and Democrats.

The White House with US President Joe Biden (Inset)

The plan backs efforts among Democrats in the US Congress to pass legislation to drive down drug costs in the country.

The proposal also calls for allowing Medicare to negotiate with pharmaceutical companies directly in order to lower drug costs, a measure considered by stakeholders as something not allowed under current law.

However, supporters of that provision say the government would save billions of dollars on drug costs for seniors while the population at large would also see prices come down.

The plan would establish new administrative measures that would cut red tape while offering federal funding for research into new treatments.

American consumers have long complained that drug pricing is unnecessarily complicated and confusing, according to report.

1. of Norwood, Pennsylvania, recently told ConsumerAffairs, that even their benefits provider was confused about prices.
2. wrote in a product review: “I was quoted a price and as a result decided to use GoodRX.

“When I went to pick up the drug at the pharmacy the pharmacist informed me that my insurance price actually was cheaper than GoodRX.

“That was not what I had been told, this price was about $40 cheaper than what I was quoted.”

Plan aims at achieving transparency in drug prices

In defending the proposal and its benefits, the White House further clarifies that its plan is aimed at making drug prices more transparent as well as affordable for consumers.

It was gathered that in recent years, physicians have joined patients in urging action to keep prices in check, especially older drugs that have not been improved but also have no competition.

Department of Health and Human Services Secretary Xavier Becerra in a statement said: “The Biden-Harris Administration remains committed to making health care more affordable for American families, and this Plan outlines one key way we will do that.

“By promoting negotiation, competition, and innovation in the health care industry, we will ensure cost fairness and protect access to care.”

Meanwhile, it has been hinted that the White House plan for lower drug price for consumers is likely to face strong opposition from the pharmaceutical industry in the country.

The Pharmaceutical Research and Manufacturers of America has been running television adverts that claim consumers would have fewer choices if Medicare were allowed to negotiate drug prices, report noted.

The group, in August 2021, was said to have cited a Congressional Budget Office (CBO) report that it said shows the drug pricing policy pushed by House Speaker Nancy Pelosi, D-Calif., would lead to 60 fewer new treatments in the next three decades.

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