One of the big takeaways from President Donald Trump’s first press conference since being elected was his claim that the pharmaceutical company is “getting away with murder” in terms of drug prices and spending. He has promised to change the way the United States bids on drugs and lower expenses for medication.
Currently, federal law prohibits the government from engaging in negotiations with drug companies to lower drug prices for seniors using Medicare. Trump has previously called to end this policy, a proposal that may see some support from Democratic lawmakers, who have been in favor of the idea in previous years.
Pharmaceutical and biotech stocks saw some large drops after the statement. However, major pharmaceutical reps say it would be premature to react to the President’s (President-Elect at the time) statements, because it is too early into his tenure to know if the proposal will actually come to fruition.
But with a growing public pushback against the outrageous cost of drugs, the idea that the system must change is certainly not an uncommon one. Some companies are starting to recognize this. For example, one pharmaceutical company, AbbVie, announced it would limit price increases in drugs to single-digit annual increases. Other companies have made similar announcements.
Healthcare a big field of focus for SEC, government
Costs of prescription medications aren’t the only concern of the federal government. Healthcare fraud costs the country billions of dollars every year. If you have any information on potential False Claims Act violations, work with a trusted Dallas attorney at Whistleblower Law for Managers.