Drug Savings? Or So We Think So . . .
Just some thoughts . . .
“The Shaky Assumptions Behind Trump’s Over $500 Billion in Projected Drug Savings,” FactCheck.org
The administration’s most favored nation policy seeks to bring down drug prices to levels paid in other countries. The bulk of the savings, estimated in a May 5 report by the White House Council of Economic Advisers, comes from assuming that all new drugs will be sold in the U.S. at MFN prices going forward, saving $529 billion. A smaller amount of savings, $64.3 billion, comes from applying MFN pricing to Medicaid.
“People are saving a lot of money,”
Which Trump said at a May 18 event announcing the addition of more drugs to TrumpRx, the administration’s website directing people to cash prices for prescription drugs.
“Over the next 10 years, the Council of Economic Advisers estimates that our most favored nation drug policies will save Americans over $500 billion. And this has been the greatest breakthrough in lowering healthcare costs in modern history.”
Dr. Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services.
“Think about the $600 billion of savings to the average American over the next 10 years,” said on June 2 at an event announcing further additions to the TrumpRx website, while calling on Congress to codify MFN pricing.
“It’s just a massive number that they voluntarily, sort of, gave back because the president went after them and said: ‘You got to deal with this problem,’” Oz continued, referring to the president’s negotiations with drug companies.
I believe Dr. Oz needs to click his ruby shoes together a few more times and repeat, “there is no longer such a thing as expensive prescription drugs in the United States,”
He did achieve some negotiated pricing for 3 years. Something they both call deals.”
I always get the feeling we are watching Monty Hall’s “Lets Make a Deal.” Monty was famous for fast-paced trading for cash and prizes, as well as inspiring the famous the “Monty Hall Problem” in probability. Hmmm, Do we stick with door A (original guess) or switch to the unopened door or solution? Does it matter? Do we believe Trump and Oz. If you do nothing, you are not any worse off. Considering who is offering a solution, you could be worst off.
First, there are no deals. We are not playing cards, casting dice, or playing darts. Pricing is negotiated based upon what there is to offer, our volume, and timing. A good buyer explores the alternatives if there are any. He has to establish a foundation in which to negotiate from. There is always volume and quality of the product. Maybe this is a better product?
I do not know who trump believes he is fooling. He is not a good negotiator. It is always a threat to achieve a goal. The United States is just one country in amongst many other countries or combinations such as the European market. Why work with the United States when you can supply Europe in combination with Mexico and Canada.
“The Shaky Assumptions Behind Trump’s Over $500 Billion in Projected Drug Savings,” FactCheck.org
I hope by the time Trump passes on or leaves office, we lose this “deal-paradigm.” As a purchasing executive, I do not recall any time where I made a deal. I did negotiate contracts and did industry studies to understand costs and materials. None of this does Trump do. It is always threats and beating someone up to extract what one side wants . . . namely him. That does not qualify as a deal either. Furthermore, I doubt he would know what a good price is or the advantages contract a contract offers.
For him, it is all about putting one over on the person across from him. More to be read in the article.