The Administration is Ramping Up Drug Pricing Response -

The President’s budget makes clear for all to see that the Administration wants to do something related to drug pricing. Unfortunately for the Administration, most of their proposals require Congressional authority that has virtually no chance of passing this year. Therefore industry stakeholders MUST be on high alert for actions the Administration might take where they already have authority.

The budget is chock full of proposals that would save billions of dollars, mostly funded by drug and biologic manufacturers. Many proposals we have seen before such as: (i) the Part D rebate proposal, (ii) moving Part B payments from ASP+6 to ASP+3, (iii) allowing government negotiation for high-cost drugs and biologics, or (iv) reducing the exclusivity period for biologics from 12 to 7 years. These proposals all could have a tremendous impact on stakeholders, but it is extremely unlikely any of them could get through the current Congress.