Friday, January 12, 2018

Health and Human Services Secretary nominee under fire for formerly working in big pharma


*Photo courtesy of The Hill*

Summary:
Trump's pick for the new Secretary of the Health and Human Services department is Alex Azar, someone who's moved back and forth from Washington (under Bush) to Eli Lilly, a large pharmaceutical company. One of Trump's promises was to curb big pharma and cut down prices on drugs, but so far there haven't been any movement in that direction. He's nominating Azar for his experience working in both fields, but much of the Senate is opposed to this nomination considering that they don't see how someone who used to raise drug prices for a pharmaceutical company is going to help accomplish their goals.

Analysis:
Picking someone that headed the pricing committee at a large pharmaceutical company, and admitted to refusing to sign off on anything lowering drug prices while in that position, doesn't seem like the best move the President could've made. Not to mention the last secretary that Trump nominated, Tom Price, didn't lower any prices but did leave his post due to a scandal over his use of government money for private jet rides. It's almost as if the position itself is cursed. President Trump wants to lower drug prices not just for the general public, but also because he hopes it will lower the cost of Medicare and Medicaid: the two biggest chunks of the federal budget.

However it doesn't seem likely Azar will make a effort to achieve these goals. His track record at Eli Lilly tells a very different story than he did at a meeting with the Senate Finance Committee on Tuesday. He actively attempted to make Eli Lilly's drugs less accessible to other countries and has said that he doesn't think the government should sit down with pharmaceutical executives and negotiate drug prices (as Trump has advocated for in the past). Additionally, while stating that he agreed drug prices were too high he hasn't given much in the way of concrete and immediate solutions and has instead insisted that there is no "silver bullet" that will fix the system in a heartbeat. Something else to note is that Eli Lilly is offering a large donation to Trump's campaign efforts should Azar be approved.

*Video Courtesy of Washington Post*
On the flip side, Azar's supporters, mostly conservatives, have agreed that he is better equipped to deal with the current state of affairs regarding Medicaid, Medicare, and drug prices because of his affiliation with Eli Lilly and his former position in Health and Human Services under George W. Bush. Although Azar does have experience in these fields, the facts point more towards the idea that he is more invested in working with the drug companies to find some sort of Band-Aid solution that wouldn't jeopardize his previous industry's massive earnings but still lower the price of Medicare and Medicaid somewhat. It will be interesting to see if the Senate approves his nomination or not, and what he will do if in office.

Questions:
1. Why do you think Trump nominated him? Did he know how it would look and did he care?
2. What's your opinion on the issue?

Sources:
CNN
The Hill
Washington Post

2 comments:

Anonymous said...

In answer to question one, I think it depends on the level of current connection that Azar has with the Eli Lilly company. If he is not currently being paid by them, then I do believe that Trump's claim makes some sense, as Azar is clearly very knowledgeable in the field of price-setting for pharmaceuticals. Also, Trump has no incentive to increase drug prices if he truly wishes to make substantial cuts to Medicaid. He clearly does not care how it looks, and he never has been one to shy away from bad press. Also, getting some campaign funding from the Lilly company doesn't hurt, although it does leave Azar's credibility in question.

I cannot truly make a very educated statement on whether this particular nominee is suitable or the position, but I do think that the brief clip in which the senator asked Azar whether he had ever decreased the price on a drug was very silly. Considering that he was working with the drug company, there would have been no reason for him to try to decrease the price of the drug. I do believe, however, that drug pricing is through the roof right now, and pharmacies are having a field day with ridiculous prices that are not adequately regulated. This is a testimony to the ability of the free market to backfire against the people's best interests.

Anonymous said...

I have to agree with Daniel about the level of Azar's current connection to the Eli Lilly company being a factor in this situation. I think this article really connects to one of the articles we read for a fishbowl (Trump and Deregulation). I think it makes sense for someone from the industry to be in a position of power in the bureaucracies, but typically the president would nominate someone who holds similar political goals, and the fact that Azar seems to be on the opposite side of Trump's expressed policy goals begs the question: is Trump really working towards what he claimed he would?