Analysts: Trump's Medicare Drug Pricing Proposal Plagued With Pitfalls

In a move that stunned Republican health care experts, Donald Trump called for Medicare to negotiate drug prices, an idea championed by Democrats. But he faces the same limits as they do with the proposal: Without leverage to say "no" to certain drugs because of the cost, the negotiation proposals that are left don't net big savings for Medicare.

Donald Trump stunned the health care world Monday night with his call for Medicare to negotiate drug prices — an idea that’s straight out of Hillary Clinton’s and Bernie Sanders playbooks, and one that other Republicans won’t touch. (Nather, 1/26)

Comments from Republican presidential front-runner Donald Trump that Medicare could reap huge savings by negotiating with drug makers raise new risks for the biotech and pharmaceutical industries, whose shares have been pressured by criticism from Democrats. ... Democrats and other critics have hammered away at drug costs in recent months, raising investor concerns that future price cuts could hurt pharmaceutical and biotech companies. Biotech stocks tumbled last September after Democratic presidential front-runner Hillary Clinton tweeted her intent to tackle high prices. (Krauskopf, 1/26)

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