After meeting with pharma lobbyists, Trump drops promise

New Post Public Reply Private Reply Replies (0) Message Board

Jan 31, 2017 at 12:20 PM 287

Quote:

After meeting with pharma lobbyists, Trump drops promise to negotiate drug prices

The new plan is tax cuts and deregulation.

Updated by Matthew Yglesias@mattyglesiasmatt@vox.com Jan 31, 2017, 11:50am EST

A lot happened in the 2016 campaign, but one of the things Donald Trump did to win the election was shift to the left on a number of key issues — promising to avoid cuts in Social Security and Medicare benefits and adopting a longstanding Democratic pledge to let Medicare negotiate bulk discounts in the price it pays for prescription drugs.

Today, after a meeting with pharmaceutical industry lobbyists and executives, he abandoned that pledge, referring to an idea he supported as recently as three weeks ago as a form of “price fixing” that would hurt “smaller, younger companies.” Instead of getting tough, Trump’s new plan is that he’s “going to be lowering taxes” and “getting rid of regulations.”

New drugs are generally covered by patent monopolies, so drug companies have a lot of pricing power; other companies can’t produce the same drug without paying royalties, so there’s little competition.

But most countries use their nationalized health care systems to negotiate a good deal on drug prices. Manufacturing pills is cheap, so it’s usually still profitable for a company to sell medicine at a pretty steep discount.

The United States doesn’t have a nationalized health care system, but we do have Medicare for senior citizens, and since the USA is a very large country, that’s still a huge potential bulk purchaser. But a 2003 law written by congressional Republicans and signed by George W. Bush prohibits the federal government from using that negotiating power.

As recently as January 11, President-elect Trump was promising to revisit this policy.

“Pharma has a lot of lobbies, a lot of lobbyists and a lot of power. And there’s very little bidding on drugs,” he said at a press conference at Trump Tower in Manhattan. “We’re the largest buyer of drugs in the world, and yet we don’t bid properly.”

Today he apparently changed his mind. According to Herb Jackson, the designated pool reporter for the day, Trump’s new policy on prescription drugs is that drug companies should get tax cuts and deregulation (emphasis added):

I'll oppose anything that makes it harder for smaller, younger companies to take the risk of bringing their product to a vibrantly competitive market. That includes price-fixing by the biggest dog in the market, Medicare, which is what's happening. But we can increase competition and bidding wars, big time.

So what I want, we have to get lower prices, we have to get even better innovation and I want you to move your companies back into the United States. And I want you to manufacture in the United States. We're going to be lowering taxes, we're going to be getting rid of regulations that are unnecessary.

Many people watching the chaotic rollout of Trump’s executive orders on immigration, his demands for investigations into phantom vote rigging, his mysterious ties to Russia, his financial conflicts of interest, and his bizarre lies about Inauguration Day crowd size have found themselves wondering why more Republicans don’t stand up to him.

This event with PhRMA lobbyists explains why. On most of the big public policy issues of the day, Trump is a very conventional Republican. And on those issues where he hasn’t been conventional, Republican Congress members and business executives feel confident they can turn him around.

On some issues, they probably won’t. But on this issue, they just did.

Newer

Older

Scroll down for more posts ▼

Top 10 Most Recent News Articles

Mastering Progressive Overload: Break Workout Plateaus

Getting off the Fitness Merry-Go-Round You've been hitting the gym, feeling great, and suddenly—bam! You've hit a wall so hard you might as well be a bug on a windshield. That's where our buddy Joshua Bankes comes in, explaining the magic of progressive overload for fitness buffs. Understanding Plateau Phenomena Remember, results aren't linear. As you start a new...

Termite Swarmers: Essential Clues and Action Steps

Understanding the Intrusive Nature of Termite Swarmers When it comes to creepy crawlies wreaking havoc on your beloved abode, termites are the stealthy troublemakers you need to keep an eye out for. Just because you catch a glimpse of them doesn't mean the damage is obvious or minimal. Spotting the Culprits: Termites vs. Ants Identifying what you're up against is the...

Gildan Faces Class Action Deadline Over Fraud Claims

Gildan's Legal Storm: Fraud Allegations When news hits about a big player like Gildan Activewear (NYSE: GIL) facing a class-action lawsuit, it's like a thunderstorm for investors who traded their stocks between February 19, 2025, and June 15, 2026. This lawsuit alleges what we some might call classic financial engineering—channel stuffing to be precise—that’s got...

Naviu's AI Travel Guide: Revolutionizing Japan Tours

A New Era of Touring Japan: Meet Naviu Alright, travelers, strap in—Naviu is about to flip your trip to Japan upside down. Launching November 1st, 2026, this AI-powered augmented reality travel companion is trying to make exploring Japan easier than ever. Behind this innovative gem is TANGLE Inc., working with technology so cutting-edge, it's practically slicing through...

Baystate Health Expands: A New Chapter with Mercy

Baystate Health Moves Forward with Strategic Integration Well, here's a tale that's as much about legacy as it is about progress. Baystate Health has brought Baystate Mercy Hospital into its fold, blending history with future prospects. This integration, folks, isn't just a merger—it's a downright overhaul of how healthcare operates in Western Massachusetts. We’re...

Smart Salary Moves for S Corp Owners: Riggs Unpacks Insights

Decoding the S Corp Salary Dance How much salary should the savvy owners of S corporations draw? It ain't a simple task or one-size-fits-all deal, folks. David Riggs spills the beans on HelloNation, sharing insights on this complex tango between drawing wages and raking in shareholder distributions. In the end, it’s about playing by the IRS rules—or risking a penalty...

OlloBot's Emotional AI Robots Connect Beyond Tasks

OlloBot Eyes Emotional Bonds, Not Just Robotics Power Is it just me, or is OlloBot onto something deep with their emotional AI companions? They've set a course that might just redefine how we perceive home robotics. At IFA Berlin 2026, they didn't just strut their technical stuff. Nope, they took it beyond gears and gadgets, turning heads with a robot that does more than...

Why Accurate HVAC Load Calculations Matter

By Owen Jenkins Updated Nov 1, 2026 Category News Views 111

Beyond Square Footage: Critical HVAC Considerations When it comes to heating and cooling your home, simply considering its square footage is like trying to predict the weather with nothing but a coin flip. Bob Schmid, an HVAC guru from Ocean View, NJ, pulls back the curtain on why the details really matter in determining the most efficient and effective HVAC setup for any...

Isinwheel's 2027 E-Mobility Pitch: Beyond Resolutions

Embracing the E-Mobility Shift Here we are at the tail end of 2026, and isinwheel is riding high on the wave of New Year resolutions with their hefty e-mobility lineup. It's not just about buying the gear—it's about tackling our reliance on gas-guzzlers with electric scooters and bikes as our trusty steeds. "Reduce car trips? More greenery in your commute? These aren't...

Afghanistan Claims Hong Kong Sixes in Thrilling Run Chase

Afghanistan's Dazzling Triumph Brace ourselves, because what just unfolded in the Hong Kong Sixes 2026 is nothing short of spectacular. Afghanistan's cricket team penned a brand-new chapter in the game's history by overcoming Australia in a pulsating final to capture their maiden Hong Kong Sixes title. Imagine this: chasing a formidable target of 116, they wrapped up the...