President Trump on Thursday called on Congress to pass a package of measures aimed at lowering drug prices, insurance premiums and increasing health cost transparency.
Why it matters: The "Great Healthcare Plan" is a response to Democrats' attacks around expired Affordable Care Act subsidies and an acknowledgement the GOP could get blamed for health care affordability heading into the midterm elections.
- But the framework isn't likely to get far given the polarization around health care in the Senate and House.
Driving the news: Trump, in a five-minute video, outlined a series of measures aimed at the insurance and pharmaceutical industries.
- He rejected reviving the enhanced Affordable Care Act subsidies that Democrats have championed, instead calling for giving that money directly to patients, without fleshing out details.
- He also called on Congress to write into law his "most-favored nation" drug pricing plan that seeks to lower U.S. prices to match what's paid in other developed countries. That proposal has drawn opposition from Republicans who say it violates free-market principles.
- Other measures would increase price transparency and strengthen requirements for health providers to prominently display prices.
- The framework also aims to hold insurers "accountable" by posting information on their profits and "frequency with which they deny care."
A White House official said the party-line reconciliation process in Congress "would not be necessary" to pass the package, expressing hope the plan could get bipartisan support.
- But some Democrats sharply criticized the framework, saying it was the latest in a series of empty promises.
- "Instead of cracking down on Big Pharma and Big Insurance, Trump and Republicans caused premiums to skyrocket, slashed payments to hospitals and communities around the country, and signed off on sweetheart deals with health industry CEOs," said Sen. Ron Wyden of Oregon, the top Democrat on the Senate Finance Committee.
- Elizabeth Anderson, an analyst for ISI Evercore, wrote in a note that Trump's plan has a low likelihood of being passed but helps to better position him on affordability issues going into the midterms.
What we're watching: Whether the plan will lead to an active legislative effort by congressional Republicans, or whether it will just be used for political cover.
Editor's note: This story has been updated with additional reporting.
