US President Donald Trump has unveiled his ‘Great Healthcare Plan’ that aims at lowering drug prices and insurance premiums, hold big insurance companies accountable, and maximise price transparency. The move is unlikely to have any impact on Indian generic drug exports to that country as Trump’s focus is to get innovator drugs sold in the US at the lowest price it is available elsewhere in the developed world. 

The Great Healthcare Plan

While the details of ‘The Great Healthcare Plan’ is not clear, a White House statement said it calls for codifying the Trump Administration’s Most-Favored-Nation deals to get Americans the same low prices for prescription drugs that people in other countries pay. 

It said that the plan would build off President Trump’s landmark actions that made insulin more affordable in his first term and the successful voluntary negotiations following his recent Executive Order to lower drug prices. 

Overall healthcare costs

The Executive Order issued in May last year had sought to balance innovation, access and overall healthcare costs. It emphasised that the cost of the innovation should be shared equitably among all stakeholders. The order stated that pharma companies that are using US research funds to develop drugs but charge US patients more for the medicines than what is being charged for patients in other countries will be given most-favoured-nation price targets to bring prices for American patients in line with comparably developed nations. 

The just announced Great Healthcare Plan takes it one step forward by supporting over-the-counter purchase of medicines and stating such a move will 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. 

However, the Plan, if implemented could shake up the US health insurance system as Trump wants to stop taxpayer-funded subsidy payments to insurance companies and instead send that money directly to eligible Americans to allow them to buy the health insurance of their choice. 

The Great Healthcare Plan also talks of getting health insurance companies to publish rate and coverage comparisons in plain English and not industry jargons, require health insurance companies to publish the percentage of their revenues that are paid out to claims versus overhead costs and profits and to publish the percentage of insurance claims they reject and average wait times for routine care on their websites. 

Announcing the plan in a video message on January 15, Trump wanted the US Congress to enact the Great Healthcare Plan.