Words by Jade Williams
With Donald Trump securing a second presidential term and his party taking control of the Senate, the US pharmaceutical industry enters a period that could bring both continuity and change over the next four years. In the wake of the vote, what issues should be top of mind for the sector?
A key question will be the future of the Inflation Reduction Act (IRA), which allows Medicare to negotiate certain drug prices and caps insulin costs at $35 per month. While many Republican politicians oppose the policy, analysts believe the returning administration may choose to retain the act due to its popularity among certain voters, particularly in Republican-led states. However, significant expansion beyond its current scope may be less likely, meaning the IRA’s pricing caps could remain limited to specific drugs without extending further to private insurance.
In potential healthcare appointments, President Trump has suggested a role for Robert F. Kennedy Jr., who is known for his scepticism of vaccines and certain pharmaceutical practices. If appointed to a position influencing public health agencies, it’s been said that Kennedy Jr. could bring in stricter drug review processes and apply more scrutiny to industry funding. Kennedy Jr. has already questioned the Prescription Drug User Fee Act in an article in the Washington Post and is known to be an anti-vaccine activist.
Additionally, healthcare reform could be thrown into question. Trump has long opposed the Affordable Care Act (ACA), or Obamacare, but has yet to propose a concrete replacement for the scheme. While he may attempt to dismantle or alter the ACA, as he tried to do in his first term, he could also focus on more incremental changes – particularly with regards to Medicaid eligibility.
While the new presidency may offer certain advantages for the pharma sector, particularly regarding the IRA, the path forward remains uncertain. Industry stakeholders will be watching closely for further announcements to gauge the administration’s policy direction. Until then? We wait.
