Biotech on the Ballot: How the U.S. Presidential Election Puts Industry Policy to the Test

In the upcoming U.S. presidential election, biotechnology and pharmaceutical policies have become a focal point for voters. Both candidates—incumbent Vice President Kamala Harris and former President Donald Trump—offer distinct policy directions, reflecting their unique visions and strategies in biotech. This analysis details their policy positions and explores potential impacts on the industry.

Health Care Affordability, Medicaid Expansion, and Workforce Shortages: Key Issues as Trump and Harris Vie for the Presidency

As the U.S. presidential race intensifies, health policy issues are expected to dominate discussions between former President Donald Trump and Vice President Kamala Harris. Here’s a look at their respective approaches on key topics.

Health Care Affordability
Health care affordability is a priority for voters, with both candidates focusing on lowering costs. During his presidency, Trump implemented the No Surprises Act to protect patients from unexpected medical bills and attempted to enforce “most favored nation” pricing for Medicare drugs. However, this faced legal challenges and was rescinded by the Biden administration. On the other hand, Harris, under Biden, helped pass the Inflation Reduction Act, which caps insulin costs for seniors and allows Medicare to negotiate prescription drug prices. Harris has also expressed a commitment to expanding these measures, including lowering more drug prices and canceling medical debt. Both candidates are likely to address the role of pharmacy benefit managers (PBMs), with bipartisan efforts in Congress aiming to reduce the profits of these intermediaries.

Medicare and Medicaid
Medicare and Medicaid have been central to health care coverage for older and low-income Americans. Trump attempted to repeal the Affordable Care Act (ACA) but managed to eliminate the ACA’s individual mandate. In contrast, Harris, as part of the Biden administration, supported the expansion of ACA subsidies, which are set to expire in 2025. She is likely to push for their extension and has previously endorsed Medicare for All. States like Georgia, with Medicaid work requirements, pose challenges for low-income individuals seeking coverage, which Harris may address through policy reforms.

Health Care Deserts and Workforce Shortages
Health care deserts, especially in rural areas, have gained less attention but are a growing concern. These regions face workforce shortages that hinder access to care, exacerbating the problem. Labor shortages in direct care workers and primary care professionals are expected to worsen by 2030. Both candidates have proposed solutions, such as increasing support for home care providers and expanding Medicaid reimbursement rates for mental health professionals. However, rural areas like Georgia face unique challenges, including reproductive care access and hospital closures. Workforce incentives, telehealth expansion, and improved reimbursement rates are key solutions that Harris supports, though Trump may prioritize different approaches to rural health care.

In addition to these core issues, the opioid epidemic remains a bipartisan concern. While Trump focuses on combating drug cartels and reducing supply, Harris has advocated for harm reduction strategies, such as overdose reversal kits and expanding treatment access. Both candidates are expected to offer competing solutions as the opioid crisis continues to claim lives across the nation.

Kamala Harris’s Healthcare Blueprint: Paving the Way for Innovation and Accessibility

Healthcare Access: Kamala Harris advocates expanding the Affordable Care Act (ACA) to improve healthcare accessibility. She plans to lower prescription drug prices and increase medical subsidies for low- and middle-income families. Her goal is universal access to basic healthcare services in the U.S.

Biotech Innovation and Research Funding: Harris strongly supports federal funding in biotechnology, particularly in fields like cancer and heart disease. She envisions public funding effectively backing promising biotech companies, accelerating drug and therapy development, and fostering medical innovation.

Prescription Drug Price Regulation: Harris proposes to regulate prescription drug prices and allow U.S. consumers to import affordable medications from abroad. This aims to ease financial burdens for patients, particularly those dependent on costly, long-term medications.

Environment and Public Health: Harris also emphasizes the environmental impacts on public health, advocating for sustainable biotech solutions to tackle health challenges from climate change. She supports developing new technologies to improve public health and promote a synergy between health and environmental goals.

Trump’s Biotech Vision: What His Policy Shifts Mean for Innovation and Industry Growth

Biotech Industry Growth: Trump’s “America First” policy encourages pharmaceutical and biotech companies to conduct R&D and production domestically. He promises tax benefits for these companies, aiming to boost the U.S. economy through a thriving biotech industry.

Regulatory Reduction: Trump advocates reducing regulatory burdens on the biotech and pharmaceutical industries to speed up drug approvals. He believes that streamlining regulations will foster innovation and allow patients quicker access to new treatments, enhancing healthcare efficiency.

Prescription Drug Price Policy: While Trump also supports lower drug prices, he prefers market-driven competition over direct price intervention. He endorses drug imports and competitive pricing to achieve fairer prices.

Vaccines and Public Health: During the COVID-19 pandemic, Trump’s administration launched “Operation Warp Speed” to expedite vaccine development and distribution. This highlighted biotech’s role in public health crises, showcasing the industry’s rapid response capabilities.

Electoral Candidates’ Diverging Visions: What Their Policies Mean for Biotech and Pharma

Drug Prices: Harris’s drug price regulations may lower costs for consumers, but they might reduce pharmaceutical companies’ profits. In contrast, Trump’s approach emphasizes competition to maintain price stability, potentially keeping prices higher but benefiting corporate profitability.

R&D Investment: Harris’s policies could boost government investment in pharmaceutical innovation, using public funds to support biotech R&D. Trump’s tax cuts might incentivize companies to increase their own R&D spending, spurring new drug development and technological advancements.

Supply Chain Security: Both Harris and Trump emphasize strengthening domestic biotech manufacturing to secure the U.S. medical supply chain. They aim to reduce foreign dependence, ensuring U.S. self-sufficiency in medical resources, especially amid global instability.

Harris and Trump offer markedly different biotech policies. Harris favors government involvement to expand healthcare coverage and regulate drug prices, highlighting public funding’s role in biotech innovation. Trump promotes deregulation, tax cuts, and market competition, supporting the industry’s growth through free-market dynamics and rapid responses to public health challenges. As the election approaches, the contrasting biotech policies of Harris and Trump will play a pivotal role in shaping the future of U.S. healthcare and innovation.

Kamala Harris and Donald Trump’s biotech policies diverge on drug pricing, R&D investment, healthcare access, and supply chain security, among other key areas.

Author

Bernice Lottering