How TrumpRx Is Bringing Unprecedented Change to the Drug Supply Chain

With the Trump Administration’s recent announcements surrounding TrumpRx, the federal government is expected to team up with various drug manufacturers to bring prescription medication directly to the doors of any American patient. Bypassing the complex drug supply chain entities that impede discounted prices from reaching patients, the direct-to-consumer (DTC) model of TrumpRx has experts anticipating a seismic shift in how drugs are distributed in the US.

“I think the pharmacies are going to lose out to the Mark Cubans, unless they can find a way to pass on the low price to the consumers,” John C. Goodman, PhD, senior fellow at the Independent Institute and president of the Goodman Institute for Public Policy Research, told Drug Topics. “Now, some of the pharmacy benefit managers are saying, we'll give the discount to the employee at the pharmaceutical counter, if the employer wants to do that. That would mean slightly higher premiums for the drug insurance, but when people who need drugs go to the pharmacy, they get the best price.”

To gain deeper insights on this administration’s plans with TrumpRx, Drug Topics invited Goodman on the most recent episode of Over the Counter. With his help, we decipher the industry-arching impact of TrumpRx and the DTC prescription drug model in general. From the roles of PBMs to pharmacists, Goodman shares the potential impacts of the DTC model on various pharmacy industry stakeholders.

Known by The Wall Street Journal as the “Father of Health Savings Accounts,” Goodman possesses extensive experience in both public policy and health care economy spaces. In this episode, he shared his thoughts on TrumpRx, what it means for patients’ prescription benefits, and the actual viability of the “Trump approach” in lowering medication costs.

“There's a difference between the Biden approach and the Trump approach. What Biden did is he acquired the right to negotiate drug prices with drug companies,” continued Goodman. “That’s just price-fixing by the government. The Trump approach is real negotiation.”

Stay tuned for weekly podcast episodes of Over the Counter powered by Drug Topics. Check out our most recent episode with Catie Stimmel, PharmD, who discussed the importance of patient safety organizations, otherwise known as PSOs.

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