Drug prices in the United States have been a topic of conversation for many American households for years now. Back when Trump was first elected in 2016, one of his main campaign pledges was to lower these ridiculous prices to help the average consumer.
On Friday, President Donald Trump announced rules intended to lower U.S. drug prices. This comes at an interesting time regarding the U.S. elections as it remains unknown whether the Biden administration will move to accept these new regulations or not.
These new rules will curb rebates paid to middlemen in Medicare and will even force Medicare to link their drug prices it pays for drugs to those paid in comparable developed countries.
The companies most affected by the change are not happy with Trump’s motives. Back in September, President Trump had issued a related executive order and at that time, The Pharmaceutical Research and Manufacturers of America (whose members include Merck and Pfizer) said it is “an irresponsible and unworkable policy.”
As of right now, it’s hard to say if this policy will stick or if it is even sure to help consumers across the country. The clock is ticking for President Trump in more ways than one.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.