Saturday, May 12, 2018
Trump's "America First" Plan To Reduce Drug Costs Is Underwhelming
The Trumpster announced his plan to cut drug prices that brought cheers from drug companies which had been concerned that he might be serious about cutting drug prices and their profits. Instead of doing what he promised on the campaign trail he bragged about changes that will have little impact on drug prices. Wall Street reacted to his announcement by bidding up drug industry stock prices by 2.7%. Most importantly, he did not give Medicare the authority to use it use its purchasing power to negotiate directly with drug companies on drug prices as he had promised on the campaign trail. Other nations typically do what Trump decided not to do. They negotiate directly with drug companies to get lower prices than they charge US customers. Trump's plan calls for a end to that practice. He wants to raise the prices that they pay for the same drugs. It is unlikely that they will oblige the Trumpster.