Pharmaceutical Research and Manufacturers of America (PHRMA)

Part of Trump's drug pricing plan is already happening

Adapted from a Pew report; Chart: Axios Visuals

As part of its plan to lower prescription drug prices, the Trump administration wants to force a major change in the way industry middlemen make their money. But that change is already happening naturally — and drug prices aren't falling.

The big picture: Pharmaceutical companies place the blame for high drug prices on pharmacy benefit managers and their complex system of rebates. The Trump administration largely agrees with that assessment, and has proposed a major overhaul that would make rebates a lot less lucrative for PBMs.

PhRMA considering Medicare drug price increase caps

Photo: George Frey/Getty Images

PhRMA, the drug industry's leading trade group, is considering a proposal that would commit member companies to limiting increases in the prices of drugs purchased by Medicare, BioCentury reported this weekend.

Why it matters: Rising brand-name drug costs are due largely to price inflation, a January Health Affairs study found, while generic and specialty drug price increases are driven more by new products entering the market.

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