(NewsNation) — The White House released a health care plan Thursday focusing on efforts to lower drug prices and insurance premiums.
The proposal calls for codifying the Trump administration’s most-favored nation deals, which would lead to lower prices similar to those paid by other countries. The president has reached a few deals with individual drug manufacturers for this pricing; however, most current deals only apply to Medicaid recipients, not those with employer-sponsored or marketplace plans.
The administration wants more prescription drugs to be made available over the counter, which the plan states will increase competition and price transparency.
The plan includes the direct delivery of subsidies to Americans to buy health insurance, rather than insurance companies. It does not indicate how much money Americans would receive or whether it would be sufficient to cover premium costs.
The White House is also calling for cost-sharing reduction programs and an end to kickbacks for pharmacy benefit managers, companies that act as middlemen and that can raise the cost of health insurance.
The proposal outlines “plain English” insurance standards and coverage comparisons, and requires insurance companies to publish the percentage of revenue that goes toward paying claims versus overhead costs and profits.
It also calls for the public disclosure of the percentage of rejected insurance claims and average wait times for routine care.
The administration also wants to require any health care provider accepting Medicare or Medicaid to post pricing and fees and to ensure insurance companies comply with price transparency requirements, letting patients know up front what they will be charged.
