Amgen’s headquarters in Thousand Oaks, California.
Eric Thayer | Bloomberg | Getty Images
A version of this article first appeared in CNBC’s Healthy Returns newsletter, which brings the latest health care news straight to your inbox. Subscribe here to receive future editions.
Drugmakers are increasingly using telehealth platforms to sell their drugs directly to patients — and that’s exactly what President Donald Trump wants.
Amgen is the latest company to enter the direct-to-consumer space, announcing Monday that it will offer its cholesterol-lowering drug repat at a cash price 60% below its current list price before insurance and rebates. It follows similar moves by other drugmakers to simplify how Americans get their medicines and their political push from the Trump administration to reduce U.S. drug prices.
Trump in July sent letters to 17 drugmakers urging them to take specific steps to limit costs for patients, including launching direct-to-consumer models for their drugs. Companies had to react by September 29. It was part of his effort to revive a controversial plan called the “most favored nation” policy, which aims to tie the prices of some drugs in the United States to lower ones abroad.
As part of the plan, Trump said his administration will launch a website called Trumprx.gov, which will have brand-name drugs available for purchase directly at an online discount. For example, under a new deal with Trump, Pfizer said it will offer a significant portion of its primary care treatments and some specialty branded drugs at this site at discounts of 50% on average and up to 85%.
The pharmaceutical industry’s direct-to-consumer programs typically offer a heavily discounted cash price, as well as free shipping, to people who buy directly from companies with cash, rather than filling their prescriptions at brick-and-mortar pharmacies and paying with their health insurance cards. By adopting a direct-to-consumer sales model, drug manufacturers can bypass middlemen such as pharmacy benefit managers and potentially capture some of the billions of dollars in revenue that flows through these middlemen each year.
Here’s your guide to the industry’s current direct-to-consumer models.
We expect the pharmaceutical industry to reach more drug pricing deals with Trump, which could include new direct-to-consumer models for drugs, so stay tuned for our coverage.
Feel free to send tips, suggestions, story ideas and data to Annika in a new email: annika.constantino@versantmedia.com.
Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz has an ambitious list of goals at the agency to help improve the nation’s health care system. I spoke with him about his biggest priorities during a wide-ranging discussion at the Aspen Institute on Monday.
Regarding Affordable Care Act sign-ups, he expressed hope that Congress will reach an agreement to end the ongoing government shutdown and extend ACA tax credits set to expire at the end of the year. With the purchasing period for ACA Open Enrollment beginning October 15, the clock is ticking.
In Medicaid, Oz said CMS is moving forward to help states leverage technology to implement new work requirements verification rules enacted by Congress earlier this year. He said the agency was in talks with tech startups he called “insurgents” to connect them with states to streamline the rollout.
“The goal would be to give states multiple options,” Oz said. “Choose the thing that you think works best with you and your current system and platform that you have.”
One of his biggest goals is to make drugs more affordable for Americans, he said.
“I believe that by the time the president’s term is up — and I made this commitment to him — 95 percent of all drugs in America will be at prices that we can feel proud of,” he said.
He touted President Donald Trump’s most favored drug pricing effort and the Trumprx direct sales platform in large part. He also endorsed negotiations on Medicare drug prices under the Inflation Reduction Act as another piece of the puzzle, saying his team had “negotiated aggressively” in the current round of talks.
Then the discussion got really interesting when I asked him what he thought about Medicare paying for expensive GLP-1 weight loss drugs.
He said that as a doctor, he is intrigued by what the drugs can do. But then he refused insurance coverage. “That’s the only question I’m going to have to kick,” he replied, adding “we’re in the middle of a lot of action, but you’ll hear more soon.”
During Trump’s first term, the administration pushed drugmakers and pharmacy benefit managers to cut costs to $35 a month. This is now the Medicare rule.
Novo Nordisk’s Ozempic is among the drugs now subject to price negotiations for 2027. You can’t help but wonder if Oz is looking to exploit this Medicare cut price on the healthcare system.
Listen to this part of the discussion here.
Feel free to send tips, suggestions, story ideas and data to Bertha at bertha.coombs@versantmedia.com.
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