Big US companies endorse President Biden’s price cuts in rare gesture

WASHINGTON, March 7 (VOICE) In an unusual and rare gesture, Corporate America ditched the capitalist outlook of “benefiting business” and spurned President Joe Biden’s campaign against high consumer prices. expressed their support. His state expense of the State of the Union address.

Just weeks after Biden used his State of the Union address to call for a crackdown on insulin prices — which he cut to $35 a time in his inflation-cutting bill last year — and a “junk fee,” starting with Corporate America , according to media reports, began heeding his pleas to ease consumer pain.

News outlet Politico reported that voluntary measures are being taken to reduce medical costs for patients and make it easier for families to fly together.

The corporate endorsement is expected to give Biden a surprise win before he announces his 2024 re-election run. Control inflation and curb the rise in consumer prices.

White House strategists are calling for momentum in a broader economic agenda tailored to deliver what Biden often calls “a little breathing room for cash-strapped families.”

Bharat Ramamurti, deputy director of the National Economic Council and one of the officials spearheading the junk tariff initiative, said, “For more than a year, the president has made it a top priority to reduce costs for people. “The fact that he sharply condemns certain actions and is willing to highlight them is something that these companies, at least some of them, will come with us. are encouraged to

Companies have made changes that are best described as modest, as a result of their calculations rather than due to political pressure.

Pharmaceutical company Eli Lilly plans to cut insulin prices for privately-insured patients to $35 a month, in line with action Democrats imposed on Medicare as part of last year’s Inflation Reduction Act. However, the discount applies only to older products, and the changes are unlikely to affect the company’s bottom line, the report said.

United Airlines, American Airlines and Frontier Airlines are all trying to get rid of surcharges parents are often charged to sit next to their children on flights.

However, airlines retain many other seat and baggage fees that constitute industry standards.

The company’s move, albeit low-key, has sparked celebrations in the West Wing, putting pressure on presidential aides to keep pace with competitors by offering Biden tangible results ahead of 2024. I believe.

Democrats have targeted high drug prices, as surveys have shown that affordability is the top concern for voters in both parties. White House economic advisers are cracking down on Biden’s “junk fee” agenda, but they have their sights set on surprise fees, which could not only affect broader economic competition, but simply drive Americans crazy. is reported to be the highest.

Data for Progress interim executive director Danielle Deiseroth said: A progressive think tank released a study after the State of the Union address post, voicing voters against banning such fees, including those associated with concert ticket purchases, hotel stays, and family sitting together on planes. We have fixed support near 80%. “Saving people’s money goes beyond political parties,” she said.

Biden wants comprehensive legislation to lock in these price limits across the board. The White House vowed to renew its pursuit of a universal insulin price cap after the Republican opposition barred it from the IRA. . A White House aide is urging Democrats to turn the idea into actual law.

With the Republican-controlled House staunchly opposing the administration’s economic policies, it is questionable whether the proposal will get much attention. This prompted Biden officials to use a combination of public pressure and soft-spoken backstage to extract concessions from individual companies, Politico reported.

The White House launched this approach during the first responders approach to Covid-19. Purge new regulations, such as requiring employers to give workers paid time off to get vaccinations, while encouraging private companies to gain the upper hand by enacting their own similar policies. , it was part of the White House’s corporate strategy to shower praise when companies did so. .

“If you can find a company to take the first step, it’s always been a catalyst for bringing in other companies,” said Zach Butterworth, who until recently served as the White House’s business liaison. The goal was to spread a sense within the private sector that if we hadn’t taken these steps, we would have been outside the mainstream.

The White House strategy has met with varying degrees of success. Each industry-wide pact secured with initiatives such as discounts on broadband internet access has faced resistance from others, such as lower gas prices.

Airlines have become family-friendly after the Department of Transportation said it plans to release a table showing which airlines will charge parents extra to sit with young children. Eli Lilly cuts the price of insulin despite ongoing scrutiny over the drug’s cost as policymakers want to make medicine more affordable for the public .

Despite corporate profit motives, Biden, in addition to backing up that vital public relations effort, hopes to persuade competitors to do the same and lower prices to give them credit. I strayed from the road.

A senior White House official said, “It’s the praise that we can always withhold. “One of the benefits for the company is that it receives criticism from the government.” The reaction was very lukewarm. Analysts say other companies may follow suit, but it won’t represent a major shift in industry behavior.

Umer Raffat, a pharmaceutical industry analyst at investment bank Evercore ISI, was candid about Eli Lilly’s price cut.

“That means we’re trying to impose a price cap, which didn’t work very well in the early 1970s,” said Neil Bradley, chief policy officer at the U.S. Chamber of Commerce. It won’t work today,” he said. “This is not a junk fee issue. This is a government price control plan they are trying to rebrand.”

Democratic lawmakers feel the move creates tremendous political opportunities for Biden, even if the financial impact is limited, and that his administration will see small but tangible improvements to the financial situation of Americans. Indicates that the

“Very few bills will pass Congress in the next two years,” said Deiseroth. “So with the Biden administration pointing to these victories, we can call this out and say it’s happening, it’s almost an accomplishment by proxy.”