Trump Sinks Drug Stocks on Medicare Drug Price Negotiation.
President Donald Trump supports Medicare drug price negotiations. This according to his spokesman on Tuesday. Those remarks that sent drug stocks slumping. Investors tried to assess whether drugmakers will be forced into bidding wars for government business.
Trump has given conflicting signals in the past weeks on whether he would let the government intervene directly in drug prices to reduce health-care costs. The Medicare program for the elderly is the biggest purchaser of health services in the country. Bidding for its business could have a major impact on Big Pharma’s profits. Unlike most countries in the world, the U.S. doesn’t directly regulate medicine prices. Furthermore, drugmakers have strongly resisted it.
“The easier way to look at this is to look at what other countries have done. Negotiating costs to keep those down,” Spicer said at the briefing. The rising costs of health care and prescription drugs are a “huge burden” on seniors, he said.