Auto logout in seconds.
Continue Logout
President Donald Trump on Thursday unveiled "The Great Healthcare Plan," a series of proposals that outline the administration's healthcare priorities, including extending lower international drug prices to Americans and paying insurance subsidies directly to consumers.
Details on the proposals
In a White House fact sheet, Trump's plan calls on Congress to codify a "Most-Favored-Nation" drug pricing plan, which would allow the government to force down drug prices to levels paid by other countries.
The plan also calls for more "verified safe pharmaceutical drugs" to be available over the counter, arguing this would "lower healthcare costs and increase consumer choice by strengthening price transparency, increasing competition, and reducing the need for costly and time-consuming doctor's visits."
On a call with reporters, CMS Administrator Mehmet Oz noted that some high-dose NSAIDs and drugs for stomach ulcers should be available over the counter or through the TrumpRx website.
The plan also rejects efforts to extend the enhanced Affordable Care Act (ACA) subsidies that expired at the end of last year and instead send money directly to Americans for health savings accounts.
"The government is going to pay the money directly to you," Trump said in a taped video the White House released alongside the plan. "It goes to you and then you take the money and buy your own healthcare."
The White House didn't provide any details on how much money it envisioned sending consumers, nor did the White House say whether that money would be made available to all ACA enrollees or just those with lower-tier plans.
Trump's plan would also require hospitals, healthcare providers, and insurers "to answer to their patients upfront on the prices they will be charged." It's unclear how this proposal would be different from existing price transparency requirements, however, Trump said he wants all healthcare providers and insurers that accept Medicaid or Medicare to "prominently post their pricing and fees in their place of business."
Administration officials also said they want insurance companies to start reporting the costs and benefits of their plans, including the denial rate and wait times for care.
The plan also calls to "end kickbacks from pharmacy benefit managers to the large brokerage middlemen that deceptively raise the cost of health insurance" and to fund a cost-sharing reduction program for health plans that Trump claimed will "cut premiums on the most popular [ACA] plans … by an average of 10 to 15%."
It's unclear whether any lawmakers in Congress are working to introduce Trump's plan. A White House official who spoke anonymously to the Associated Press said the administration has been discussing the proposal with some allies in Congress but couldn't name any of the lawmakers working to address the plan.
RELATED resources
- The federal policy issues keeping healthcare leaders up at night
- Our expensive new normal: why traditional drug cost controls are obsolete
- Health policy roundup: GOP senators, Trump propose alternatives to extending ACA subsidies
- Former HHS leaders weigh in on navigating Trump 2.0 (and answer your questions)
- How policy changes will impact your bottom line
- Healthcare policy updates
Discussion
On the call with reporters, Oz framed the plan as more ambitious than the current debate around healthcare affordability and the "lazy lawmaking" of the past.
"We need big seismic shifts to start to address some of these problems, especially in the area of cost," he said.
Oz claimed that the plan will result in savings and new accountability for the healthcare industry, suggesting that if the plan is passed by Congress, it would make the Trump administration's dealmaking tactics a fixture of the federal government's role in the health sector.
"The president is responding to the many people who are talking to him about the problems in healthcare," Oz said. "People are complaining about drug prices. We have a framework for addressing that. They complain about insurance premiums in general, not just in the ACA. They are complaining about the lack of accountability of big insurance."
Sen. Ron Wyden (D-Ore.), the top Democrat on the Senate Finance Committee, dismissed Trump's announcement as one of his "empty promises" on healthcare.
While Trump's proposals could shape the debate over healthcare affordability, analysts on Wall Street said they don't foresee sizable changes actually becoming law.
"We view this new document as a largely political exercise," said Spencer Perlman, director of healthcare research at Veda Partners. "We think it is intended to demonstrate that the White House is doing 'something' about affordability and healthcare prices, but we believe the policies either stand little chance of being enacted by the current Congress or will have a minimal impact if enacted."
(Payne, et al., STAT+ [subscription required], 1/15; Broadwater, et al., New York Times, 1/15; Price/Swenson, Associated Press, 1/15; Diamond, Washington Post, 1/15; White House press release, 1/15; White House, "The Great Healthcare Plan," accessed 1/15; White House fact sheet, 1/15)
Don't miss out on the latest Advisory Board insights
Create your free account to access 1 resource, including the latest research and webinars.
Want access without creating an account?
You have 1 free members-only resource remaining this month.
1 free members-only resources remaining
1 free members-only resources remaining
You've reached your limit of free insights
Become a member to access all of Advisory Board's resources, events, and experts
Never miss out on the latest innovative health care content tailored to you.
Benefits include:
Unlimited access to research and resources
Member-only access to events and trainings
Expert-led consultation and facilitation
The latest content delivered to your inbox
You've reached your limit of free insights
Become a member to access all of Advisory Board's resources, events, and experts
Never miss out on the latest innovative health care content tailored to you.
Benefits include:
Unlimited access to research and resources
Member-only access to events and trainings
Expert-led consultation and facilitation
The latest content delivered to your inbox
This content is available through your Curated Research partnership with Advisory Board. Click on ‘view this resource’ to read the full piece
Email ask@advisory.com to learn more
Click on ‘Become a Member’ to learn about the benefits of a Full-Access partnership with Advisory Board
Never miss out on the latest innovative health care content tailored to you.
Benefits Include:
Unlimited access to research and resources
Member-only access to events and trainings
Expert-led consultation and facilitation
The latest content delivered to your inbox
This is for members only. Learn more.
Click on ‘Become a Member’ to learn about the benefits of a Full-Access partnership with Advisory Board
Never miss out on the latest innovative health care content tailored to you.
Benefits Include:
Unlimited access to research and resources
Member-only access to events and trainings
Expert-led consultation and facilitation
The latest content delivered to your inbox
