K-STREET, 10,000 FEET: Republicans push back on progressive “most favored nation” drug plan for reconciliation: “political suicide”
THE LOWDOWN:
For years, progressive leaders have urged policymakers to adopt federal price controls for prescription drugs, mirroring those in socialist countries.
Now groups, including Arnold Ventures — led by progressive billionaire John Arnold — are pressing Republicans to incorporate these policies into the Republican reconciliation bill.
Progressive advocates argue that MFN would reduce costs for Republicans, as socialist countries often pay less than the cost to produce prescription drugs.
Angela Landers, a spokesperson for Arnold Ventures, told the Washington Reporter, that “as a philanthropy, Arnold Ventures is committed to improving health care delivery, lowering costs, and reducing disparities in access. We have worked, and will continue to work, across the political spectrum with leaders who are committed to these efforts.”
For years, progressive leaders have urged policymakers to adopt federal price controls for prescription drugs, mirroring those in socialist countries.
Now groups, including Arnold Ventures — led by progressive billionaire John Arnold — are pressing Republicans to incorporate these policies into the Republican reconciliation bill. Sources tell the Washington Reporter that progressive advocates are making a last-minute push to include a policy called Most Favored Nation (MFN) pricing in the Medicaid section of the reconciliation bill. Under MFN, the federal government would set price controls for prescription drugs to match prices in socialist countries. Arnold has pushed for similar policies in the past.
Progressive advocates argue that MFN would reduce costs for Republicans, as socialist countries often pay less than the cost to produce prescription drugs. Arnold Ventures has funded polling presented to Congressional Republicans, promoting MFN as an alternative to traditional Republican policies, such as adding work requirements for healthy adults on Medicaid or cutting waste, fraud, and abuse. One source reported that a presenter told senior Congressional aides that “it’s a no-brainer to have the government negotiate drug prices.”
However, four Republican sources told the Reporter that including MFN in the reconciliation bill is unlikely to succeed and could have severe political consequences.
A senior Congressional official told the Reporter that “the problem with MFN is that it’s not just bad policy — half of our House members strongly oppose it. Adding a last-minute progressive priority sinks the entire bill.”
A Senate committee staffer specializing in healthcare issues added that “if Medicaid pays less for drugs than the cost to produce them, the prescription drug program will collapse. These policies are only supported by figures like Bernie Sanders, Elizabeth Warren, and Alexandria Ocasio-Cortez. Republicans aren’t going to do this.”
Another Senate aide remarked: “which is easier to explain to voters: that we cut waste, fraud, and abuse from Medicaid, or that we inadvertently eliminated their prescription drug access because liberals convinced someone [MFN] was a good idea?”
Multiple outlets report that industry groups and conservative nonprofits, including Citizens Against Government Waste, have begun lobbying Congress against MFN. “It’s ultimately political suicide,” one Republican source added, about the idea of jeopardizing access to drugs for seniors.
A senior Republican strategist warned the Reporter of the political fallout: “If American seniors and Medicaid patients lose access to drugs — which will happen — it could swing enough seats to impeach and remove President Trump. That’s probably John Arnold’s plan.”
Angela Landers, a spokesperson for Arnold Ventures, told the Reporter that “these claims continue to be entertaining and false.”
“As a philanthropy, Arnold Ventures is committed to improving health care delivery, lowering costs, and reducing disparities in access,” Landers said. “We have worked, and will continue to work, across the political spectrum with leaders who are committed to these efforts.”
“Additionally, the administration is on record supporting policies to lower drug prices,” she added.