Donald Trump has said that “$300 billion could be saved” by making Medicare, the US federal health insurance programme, negotiate drug prices with pharma companies
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Donald Trump
Trump told a New Hampshire crowd in January that as the biggest buyer of prescription drugs, Medicare could make huge savings by negotiating with pharmaceutical companies.
However, in 2014, Medicare spent $121.5 billion on prescriptions and $21.5 billion on hospitalisation coverage totalling $143 billion - less than half of what Trump claims he will save. It seems that in terms of healthcare costs Trump’s figures may need reviewing.
The Republican hopeful has also taken the industry to task over the recent US price hiking furore. In a press conference in California, Trump drew attention to former Turing boss Martin Shkreli’s price hiking activities.
In 2015 Turing Pharmaceuticals, bought the rights to Daraprim, a drug used by pregnant women and people with AIDs. He then hiked the price of that drug by 5000% overnight, resulting in a price-per-tablet explosion from £8.95 ($13.50) to £475 ($750).
Trump said: “This young guy raised the price to a level that’s absolutely ridiculous and he looks like a spoiled brat doing it,” he told ThinkProgress. “You want to know the truth? He looks like a spoiled brat.”
However Trump’s statement that, “$300 billion could be saved” is the first time he has made his position on pharma industry clear and indicates that addressing price hiking tactics could form part of his political agenda if he's elected President
If this agenda comes to pass it will have a financial knock-on effect on the pharmaceutical sector as Trump expects Medicare’s savings to come from multiple reductions in the prices of drugs.