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May 2018

“The Health Industry Appears Unfazed”: President Trump’s Phony Prescription Drug Speech Not Getting Better with Age

President Trump’s widely-panned prescription drug pricing speech continues to earn poor reviews for choosing big drug companies over everyday Americans. The early reviews of the speech were not kind, with headlines ranging from “Looks Nothing Like What He Promised” to “Lets Drug Companies Off the Hook,” and they haven’t let up. As HHS Secretary Alex Azar attempts to cover the Administration’s tracks with his own speech this morning, here are some late-breaking headlines about Trump’s tone-deaf speech:

Washington Post: Trump’s drug price retreat adds to list of abandoned populist promises

Washington Post: The health industry appears unfazed by Trump’s drug pricing speech

Bloomberg: Drug Industry Dodges Its Worst Fears in Trump’s Plan to Lower Prices

Pittsburgh Post-Gazette: Experts say Trump’s prescription to reduce drug prices is not what the doctor ordered

PharmTech: Trump Drug Pricing Plan Outlines Rule Changes Pharma Can Live With

Fox News: Trump’s new prescription drug plan is incomplete — here are two ways to make it better

STAT News: Trump promised to bring pharma to justice. His speech sent drug stocks soaring

McKnight’s Long-Term Care News: Trump prescription plan doesn’t include Medicare-negotiated pricing

The American Prospect: To Bring Drug Prices Down, Trump Proposes — Nothing, Really

Fortune: Why Trump’s Big Drug Price Speech Sent Health Care Stocks Soaring

“Big Pharma Gets A Big Win”: Trump’s Phony Prescription Drug Speech By the Headlines

Yesterday, President Trump once again choose big drug companies over everyday Americans. His plan broke his promise to do the one thing that would lower prices for tens of millions, allow Medicare to negotiate for a fair price, and its clear winners were the nation’s largest pharmaceutical companies, which saw their stock prices surge after his remarks. Here’s how it was covered, by the headlines:

Wall Street Journal: Trump’s Plan to Cut Drug Prices Leaves Industry Relieved

Bloomberg: Trump’s ‘Sweeping’ Drug-Price Plan Comes Up Short

Reuters: RPT-Trump plan for drug prices seen largely sparing industry

Huffington Post: Trump’s Plan On Prescription Drug Prices Looks Nothing Like What He Promised

Associated Press: President Trump’s Plan to Lower Drug Prices Spares Pharma Industry

Yahoo Finance: Trump lets drug companies off the hook

The Atlantic: Big Pharma Gets a Big Win From Trump

Washington Examiner: Big Pharma largely unscathed by Trump’s drug-price crackdown

Bio Pharma Dive: Pharma breathes easy as Trump’s drug pricing plan fizzles

Chicago Tribune: Trump’s plan to reduce drug prices doesn’t include campaign pledge to allow Medicare to negotiate prices

Endpoints News: Trump’s ‘sweeping action’ to lower drug prices mocked by analysts as relieved investors trigger rally in Big Pharma stocks

Vice: Trump Officially Backed Out of His Own Plan to Make Drugs Cheaper

Kaiser Health News: Trump Vows (Again) To Lower Drug Prices But Skeptics Doubt Much Will Change

Investor’s Business Daily: Biopharma Stocks Fly As Trump Speech Seen As ‘More Bark Than Bite’

San Francisco Chronicle: Editorial: Trump’s new drug price strategy won’t change the status quo

New York Daily News: Our opinion: Trump’s bitter pill: His prescription drug plan is weak in one of the most important areas

Big Pharma Stocks Spike After Trump’s Dud Speech

As big pharmaceutical company stocks spiked following President Trump’s short and substance-free ‘major drug pricing reform address,’ Protect Our Care Campaign Director Brad Woodhouse released the following statement:

“When big pharmaceutical companies’ stocks spike during your big reveal on lowering prices, you’re doing something wrong. Don’t be fooled: President Trump and his Administration are bought and paid for by Big Pharma. They refuse to take meaningful action on skyrocketing drug prices, broke their promise to allow Medicare to negotiate lower drug costs, and all while showering drug companies with record tax breaks. Sadly, it’s ordinary Americans who will continue to pay the price for Trump’s broken promise.”

Trump’s Missing Prescription On Pharmaceutical Reform Leaves Americans Paying the Price

As President Trump delivers a speech that’s long on rhetoric and short on real policies to address the skyrocketing price of prescription drugs, Protect Our Care Campaign Director Brad Woodhouse released the following statement:

“Nowhere is the Trump presidency swampier than when it comes to prescription drugs. It’s no surprise that a President who chose a pharmaceutical executive as his Secretary for Health & Human Services is letting drug companies off the hook. Today’s speech is long on grandstanding and short on details, with small-ball policy proposals that only a drug company executive could love. Perhaps the million-plus dollars that multinational pharmaceutical company Novartis funneled to Trump fixer Michael Cohen has paid off after all.

“By allowing big pharmaceutical companies to avoid taking responsibility and instead scapegoat everyone but themselves for rising prices, President Trump has broken a key campaign promise. Despite what he told the American people in 2016, he confirmed today that he won’t allow drug companies’ biggest customer, Medicare, to negotiate and save seniors and taxpayers money.

“Instead, big pharmaceutical companies will continue to charge outrageous prices, the American people will keep paying more and more, and then these same companies will enjoy hundreds of billions in tax breaks. Today, Trump has once again prioritized greedy corporations over Americans’ health and financial well-being.”

Trump Administration Has Been All Talk, Backward Action On Drug Prices …

A Promise Broken on Price Negotiation. “During his presidential campaign, Trump called for the government to use its clout to negotiate Medicare drug prices, but senior administration officials said he would not call for that change — which is stridently opposed by drug companies.” [Washington Post, 5.10.18]

Pharma’s Reaction: Relief. “‘We expect President Trump’s upcoming speech on lowering drug prices to be rhetorically critical of pharmaceutical manufacturers and the supply chain, but he will not propose actions that actually threaten drugmakers’ ability to set high prices for their product,’ said Height Capital Markets analyst Andrea Harris.” [MarketWatch, 5.11.18]

Drug Prices Continue to Soar Under Trump. A report by Senate Democrats finds that the prices of the 20 most-prescribed drugs under Medicare Part D have increased substantially over the past five years, rising 10 times faster than inflation. Another report from the Pharmacy Benefits Consultants finds that over the past 14 months, 20 prescription drugs saw list-price increases of more than 200 percent.

Trump Installed Big Pharma Executives In Key Administration Posts. President Trump installed a former Eli Lily executive, Alex Azar, as his secretary of Health and Human Services and his appointment of Scott Gottlieb at FDA was described as “music to pharma’s ears.” Other pharma lobbyists writing Trump’s health policy include senior adviser at FDA, Keagan Lenihan, who joined the administration after lobbying for the drug distribution giant McKesson, former Gilead lobbyist, Joe Grogan, who reviews health care regulations at the Office of Management and Budget, and Deputy Assistant to the President for Domestic Policy Lance Leggitt, who has lobbied for a variety of drug-industry clients.

Trump’s Proposals Always Fall Far Short Of His Promises. President Trump promised that he would allow Medicare to use its buying power to negotiate drug prices directly with suppliers, but after meeting with pharmaceutical executives early in 2017, Trump abandoned that pledge, calling it “price fixing” that would hurt “smaller, younger companies.” The planned announcement to move some drugs from Medicare Part B, in which pharmaceuticals are purchased and administered by medical providers, to Part D, will do little to restrain the cost of prescription drugs for America’s seniors and falls far short of Trump’s promises.

Republican Health Care Sabotage Makes Prescription Drugs More Expensive For Millions. The Trump Administration wants to let states sell junky short-term health plans that skirt Affordable Care Act requirements. Typical short-term policies do not cover prescription drugs or maternity care, mental health care, preventive care, and other essential benefits. Not only that, but short term plans result in higher costs for people enrolled in full coverage plans as well as soaring premiums.

… While Pharma Profits

Pharmaceutical Companies Have Reaped Huge Benefits From The Trump Tax Bill. The Trump tax scam means billions of dollars in tax breaks for pharmaceutical companies. An Axios study found that 21 health care companies collectively expect to gain $10 billion in tax savings during 2018 alone. Most of the tax break windfall for health care companies is going toward share buybacks, dividends, acquisitions and paying down debt. According to Axios, nine pharmaceutical companies are are spending a combined $50 billion on new share buyback programs. All of the buybacks were announced during or after passage of the tax bill. Some drug companies are also increasing dividends for shareholders, with AbbVie increasing its cash dividend by 35 percent while also announcing a new $10 billion share repurchase program.

Massive Profits And Price Increases. Profits at seven of the largest pharmaceutical companies were up 39 percent in the first quarter of 2018. AbbVie, Amgen, Novartis, GlaxoSmithKline, Bristol-Myers Squibb, Eli Lilly, and Biogen cumulatively reported $12.1 billion in profit in Q1 of 2018. AbbVie, Amgen, and Biogen all began 2018 with price increases on some of their marquee products that far exceeded inflation.

Soaring CEO Pay. According to an Axios study, the CEOs of 70 of the largest U.S. health care companies cumulatively have earned $9.8 billion since 2010. CEOs took home nearly 11 percent more money on average every year since 2010 — far more than the wage growth of nearly all other workers. In 2017 alone, 30 health care executives made a combined $976 million.

 

Misleading Congress, Azar Denies Reality of Rate Hikes

HHS SECRETARY AZAR: “I really do not believe it will have a significant impact on our risk pool, the repeal of that..I don’t see the premium effect.” [Senate Appropriations Subcommittee hearing, 5/10/18]

EX-HHS SECRETARY TOM PRICE: “There are many, and I am one of them, who believes that that actually will harm the pool in the exchange market because you’ll likely have individuals who are younger and healthier not participating in that market. And, consequently, that drives up the cost for other folks in that market.” [World Health Care Congress speech, 5/1/18]

VIRGINIA INSURANCE COMPANIES: “Both Cigna and CareFirst BlueCross BlueShield cited policies advocated by the Trump administration, including the repeal of ObamaCare’s individual mandate, as part of its justifications for the increases. Cigna is proposing an average premium increase of 15 percent for its 103,264 customers in Virginia, with a range of increases from 6.4 percent to 40 percent. CareFirst is proposing a 64 percent increase for its approximately 4,500 customers in the commonwealth, citing an increase in sicker people entering the marketplace.” [The Hill, 5/4/18]

CONGRESSMAN DON BEYER (D-VA): “Come to Virginia, where premiums will soar by up to 64% because of sabotage by your boss and your agency, and say that again. Maryland too. Have you looked, or talked to actual people?” [Twitter, 5/11/18]

This Week in the War on Health Care

While foreign policy dominated the headlines this week, Republicans continued their unprecedented assault on the American health care system. Here’s what happened this week in the war on health care – as well as three op-eds and one poll worth checking out:

UNINSURED RATE UP THANKS TO REPUBLICANS’ WAR ON HEALTH CARE

A new survey from Gallup finds statistically significant uninsured rate spikes in 17 states over the first year of the Trump presidency, attributing the dramatic increase to Republicans’ repeal-and-sabotage campaign against the Affordable Care Act and Medicaid.

Health care advocates warned President Trump and Congressional Republicans that their repeated attacks would lead to fewer coverage and higher costs, and these numbers confirm it. Republicans’ war on health care has had a fast and dramatic negative impact, and things will get worse until we can stop these attacks on our care.

PREMIUMS RISE AS INSURANCE COMPANIES DECRY GOP ACTIONS

This week, 2019 rates were officially announced in Virginia and Maryland, and the results are not pretty. Rates in Virginia are slated to rise as much as 64%, while they could go up as much as 91% in Maryland. What’s behind these hikes?

As Cigna said in Virginia:

Factors behind the rate request include “elimination of the Individual Mandate penalties” and “anticipated changes to regulations regarding Short Term Medical and Association Health Plans.” [Fierce Healthcare, 5/10]

And as Kaiser Permanente said in Maryland:

“‘These proposed rates reflect the expected costs of providing coverage for these members, including the impact of eliminating the individual mandate penalty.” [Baltimore Sun, 5/7]

Now more than ever, bipartisan actions to stabilize the marketplace would be valuable. Unfortunately…

SEN. ALEXANDER REFUSING TO WORK WITH DEMOCRATS TO SHORE UP MARKETPLACE

A new report indicated that Sen. Lamar Alexander (R-TN) will refuse to work with Democrats to avoid double-digit rate hikes caused by Republicans’ actions to sabotage health care.

In other words, after blowing up bipartisan talks to alleviate the damaging rate hikes GOP policies are forcing on millions of Americans, Sen. Alexander is now flailing to avoid the consequences of his actions. His ‘dog ate my homework’ finger-pointing is too little, too late.

CHILDREN’S COVERAGE BECOMES THE LATEST FOCUS OF THE GOP’S HEALTH CARE CUTS

Yesterday, President Trump sent Congress a proposal to slash $7 billion from the Children’s Health Insurance Program (CHIP) to patch up the record deficits being inflicted by his tax breaks for big corporations, cuts which would cause a ripple effect of harm to critical health care programs.

Before the Trump presidency the CHIP program earned broad bipartisan support. Now, Republicans in Congress use kids’ health as a bargaining chip Is there no bridge too far for the GOP in their relentless war on our health care?

REPUBLICANS NOMINATE THREE MORE ENEMIES OF HEALTH CARE

On Tuesday night, candidates who have pledged to continue the GOP’s destructive repeal-and-sabotage agenda won Senate primaries in Indiana, Ohio, and West Virginia.

  • Ohio Republican Senate nominee Jim Renacci has voted to repeal or tear apart the Affordable Care Act 58 times, including last year’s House repeal bill that would have kicked 23 million Americans off of their health care, spiked premiums, undermined health care and reproductive rights for women, and imposed an age tax on older Americans;
  • Indiana Republican Senate nominee Mike Braun has called for a full repeal of the Affordable Care Act, with no plan to replace it; and
  • West Virginia Republican Senate nominee Patrick Morrissey has twice sued the federal government to overturn the Affordable Care Act, most recently joining a February suit to invalidate the law.

In the Senate, these nominees would push a destructive agenda that represents a grave threat to the Affordable Care Act and Medicaid, placing millions of Americans’ coverage and access to care at risk. But despite what Renacci, Braun, and Morrissey might say, the majority of the American people are saying louder: enough is enough – it’s time for Republicans to end their war on our health care. In fact, just this week…

OPINION PAGES CALL OUT GOP SABOTAGE

The Washington Post and Minneapolis Star Tribune both published scathing editorials against aspects of the GOP’s prolonged repeal-and-sabotage campaign this week, and a New York Times column made clear the effects of this campaign.

Here’s the Washington Post:

The effects of the president’s underinformed instincts, enabled by the ideologues in his administration, are beginning to show up in some of the numbers, representing real pain that Americans are suffering for Mr. Trump’s deficient leadership… Obamacare critics regularly describe all problems as the inevitable result of a poorly designed law. But the numbers suggest that the critics’ sabotage efforts are to blame. After impressive declines during President Barack Obama’s second term, the fund found that the uninsured rate increased in both of the years Mr. Trump has been in office.

The Star Tribune:

Trump’s Department of Health and Human Services (HHS) has proposed extending the coverage period to roughly a year from about three months…. The savings might dazzle consumers, but ‘Buyer beware!’ ought to be shouted from the rooftops… Short-term plans are cheap because they don’t cover very much. Policymakers pushing these plans ought to be asked if they’d be comfortable relying on them for their families. The only responsible answer is ‘no.’

And the New York Times:

Insurers are already proposing major premium hikes — and they are specifically attributing those hikes to G.O.P. actions that are driving healthy Americans out of the market, leaving a sicker, more expensive pool behind. So here’s what’s going to happen: Soon, many Americans will suffer sticker shock from their insurance policies; federal subsidies will protect most of them, but by no means everyone. They’ll also hear news about declining insurance coverage. And Republicans will say, ‘See, Obamacare is failing.’ But the problem isn’t with Obamacare, it’s with the politicians who unleashed this termite infestation — who are doing all they can to take away your health coverage. And they need to be held accountable.

KAISER TRACKING POLL CONFIRMS: HEALTH CARE A MAJOR ISSUE FOR VOTERS

This morning’s Kaiser Family Foundation tracking poll found that health care remains a top issue among voters, as covered by the Washington Times and HealthExec. Among its key findings:

  • 77% of those surveyed said health care was an important issue, with 30% of these voters listing health care costs as the reason why – just as premiums are rising due to GOP sabotage.
  • 19 percent of Independents cited health care a top issue, second only to the economy at 22 percent.
  • Kaiser considers one in four Americans “health care voters,” who “say a candidate’s position on health care will be the ‘most important factor’ in their decision.”
  • Cutting Medicaid and Medicare remains deeply unpopular. As the poll found: “Few partisans – regardless of party identification – say they would be ‘more likely’ to vote for a candidate who wants to reduce government spending on health programs such as Medicare and Medicaid.”
  • People are more likely to support candidates who support the Affordable Care Act, and less likely to support candidates who favor repeal.

The Kaiser survey follows numerous recent polls that find health care remains the top issue heading into midterms, including a new CBS poll released Tuesday that finds health care is the most important issue in deciding votes this November.

Kaiser Health Tracking Poll Finds Health Care Remains a Top Issue to Voters

This morning’s Kaiser Family Foundation tracking poll finds that health care remains a top issue among voters, including Independents, and that one in four are “health care voters,” whose votes will be determined by candidates’ health care positions. Among the key findings:

  • 77% of those surveyed said health care was an important issue, with 30% of these voters listing health care costs as the reason why – just as premiums are rising due to GOP sabotage.

  • Health care is also a top issue for battleground voters, those in areas with competitive House, Senate, or Governor’s races.
  • 19 percent of Independents cited health care a top issue, second only to the economy at 22 percent.
  • Kaiser considers one in four Americans “health care voters,” who “say a candidate’s position on health care will be the ‘most important factor’ in their decision.”
  • Cutting Medicaid and Medicare remains deeply unpopular. As the poll found: “Few partisans – regardless of party identification – say they would be ‘more likely’ to vote for a candidate who wants to reduce government spending on health programs such as Medicare and Medicaid.”
  • The Affordable Care Act maintains a 6-point net-positive rating. As the poll’s author’s note, “This is similar to last month’s tracking poll and continues the nearly year-long trend of a larger share of the public holding favorable than unfavorable views.”
  • People are more likely to support candidates who support the Affordable Care Act, and less likely to support candidates who favor repeal.

The Kaiser survey follows numerous recent polls that find health care remains the top issue heading into midterms, including a new CBS poll released Tuesday that finds health care is the most important issue in deciding votes this November.

Susan Collins & Seema Verma Had Their Chance to Lower Rates & They Blew It

Washington, D.C. – After Senator Susan Collins (R-Maine) bragged about discussing rising premiums with Centers for Medicare & Medicaid Administrator Seema Verma, Protect Our Care Campaign Director Campaign Chair Leslie Dach released the following statement:

“Senator Collins talking to Administrator Verma about Republican rate hikes is about as much help to working families as two foxes chatting in front of a chicken coop. Senator Collins’ ‘plan’ for lowering premiums was to vote for a TrumpTax bill that raised them by double digits, while Administrator Verma’s ‘plan’ is to sell junk insurance that doesn’t cover essential medical care and allows companies to once again discriminate against people with pre-existing conditions. Last fall, Senator Collins had a clear opportunity to tackle rising premiums, and she missed the boat. She could have voted against the GOP tax bill and kept her promise to pass a bipartisan market stabilization package to undo some of the Trump Administration’s own sabotage. Instead, she did neither. Senator Collins and Seema Verma can discuss rising premiums until the cows come home, but in fact, it’s their policies that got us into this mess in the first place.”

Louisiana Nursing Home Crisis Highlights How Medicaid Cuts Threaten Seniors

As Louisiana officials announce that they will send 37,000 seniors nursing home eviction notices due to state Republicans’ Medicaid funding cuts, Protect Our Care Campaign Director Brad Woodhouse released the following statement:

“The nursing home crisis in Louisiana is a stark example of how Medicaid cuts threaten critical supports for American seniors. States’ Medicaid programs are facing an onslaught of attacks and funding cuts from Republican politicians at both the federal and state level. Meanwhile, six in 10 nursing home residents in America need Medicaid funding to keep their beds, and the program also supports over 50% of seniors’ in-home long-term care. Republican attacks on Medicaid directly threaten seniors, and as they continue to escalate, we will continue to see crises like the shameful situation today in Louisiana.”

Why Medicaid Cuts Threaten Seniors

  • More than 6.9 million American seniors have Medicaid coverage. 6,920,200 seniors, age 65 and older, are enrolled in Medicaid.
  • Medicaid funds 53 percent of long-term care nationwide. As seniors age, long-term care services become more and more vital, serving half of seniors over age 75 and three in four seniors over age 85.
  • More than one in five Medicare enrollees also have Medicaid coverage. Most dual-eligibles are over age 65, and are more likely to have complex and chronic health needs.

 

FACT SHEET: How Medicaid Works for Seniors & Older Adults