President Donald Trump put a nice good scare into the pharmaceutical industry in January, letting them know that he took notice on how the drug prices have just been too high in recent times. President Trump went on to say that these companies were “getting away with murder” and that they used all their money to gain too much power.
The United States is the largest market for drugs in the world, and we were severely being ripped off. President Trump pointed out that we could save $300 billion in government money if we could figure out a way to negotiate these drug prices.
Big pharma announced later that month that they will lower the cost of their drugs! WIN!
President Trump explained in an interview with Time magazine, which named him “Person of the Year,” that he intended to lower drug prices. Trump said, “Well actually the drug companies haven’t done well. I saw the other day the drug companies have not gone up very much. Because I’m going to bring down drug prices. I don’t like what’s happened with drug prices.”
Trump lamented that the pharmaceutical lobby impeded the ability for the government to negotiate drug prices. “We don’t do it,” he said. “Why? Because of the drug companies.”
In the past, Congress has failed to enact sufficient reforms to lower drug prices. When Congress was drafting the Medicare Part D prescription-drug benefit, big pharma added a provision which banned the Centers for Medicare and Medicaid Services from negotiating with drug companies to set prices.