Healthcare Stocks Slide After Trump Says "Drug Prices Out Of Control"

Another day, another Trump soundbite to bring the algos out of hibernation. Moments ago the commented on tax and welfare reform, stating that "some people are taking advantage of the system while others are not receiving enough to live."

  • TRUMP SAYS LOOKING TO REDUCE GOVERNMENT SPENDING HEADING INTO NEXT BUDGET SEASON
  • TRUMP SAYS LOOKING AT WELFARE REFORM IDEAS
  • TRUMP SAYS SOME PEOPLE ARE TAKING ADVANTAGE OF THE SYSTEM WHILE OTHERS ARE NOT RECEIVING ENOUGH TO LIVE

But what really spooked the market was Trump reprising Hillary circa the summer of 2015, when the president said that "prescription drug prices are out of control."

  • TRUMP SAYS PRESCRIPTION DRUG PRICES ARE OUT OF CONTROL

As Bloomberg adds, Trum told reporters at start of cabinet meeting that “prescription drug prices are out of control” and that "the drug companies frankly are getting away with murder.”

Says Americans pay as much as quadruple for drugs, compared with other countries, and that he wants to bring prices down to levels seen elsewhere.

“The world is taking advantage of the United States”

This was enough for the headline scanning algos to immediately send the IBB, XBI and the S&P healthcare index tumbling, wiping out the day's gains.

However, as by now it has become all too clear to the algos that any Trump-inspired selloff is merely an opportunity to reload the BTFDs, we begin the countdown to how long it will take the algos to fill the gap, as if Trump never said anything at all...

Comments

hedgeless_horseman 847328_3527 Mon, 10/16/2017 - 12:31 Permalink

 

"I'm entitled to it."

Exactly...http://www.zerohedge.com/news/2017-09-18/most-insensitive-survey-result… __ drinks caffeinated beverage or energy drinks and takes high-blood-pressure pills__ is obese and has Type 2 diabetes__ smokes tobacco and receives tax-payer subsidized healthcare  When we subsidize something, we get more of it...http://www.zerohedge.com/news/2017-03-14/i-am-tempted-harbor-deep-resen…

I am tempted to harbor deep resentments against blacks. These resentments might be manifested in "micro-aggressions" such as a mere look on my face of utter contempt for the many 300+ pound, black, professional voters on government disability due solely to obesity, yet still employable in a variety of jobs, which I encounter almost every day here in Texas driving a "free" electric scooterchair, often times snacking on "free" junk food purchased with a SNAP card, or travelling from a "free" doctor's visit to get a prescription for "free" medicines to "treat" illnesses like depression, high blood pressure, and low energy.  I think that readers could easily imagine how it is very easy for me to resent such behaviors.

In reply to by 847328_3527

Zorba's idea knukles Mon, 10/16/2017 - 13:29 Permalink

you may consider adding the RepugniCANTS, RINO's and NEOCONS to the cause for dismantlement of the American Dream. The Right has also flapped its wings for the same dirty bird...our Corporate Citizens and all the deep staters. Hell, there must be dumpsters at the nations Capital full of worn out knee pads.

In reply to by knukles

swmnguy hedgeless_horseman Mon, 10/16/2017 - 13:42 Permalink

I recently worked a symposium on the future of healthcare in the US, hosted by a globally-known clinic you've heard of.  The presenters were all Medical doctors, either currently practicing or working in the Executive Suite now.  Every one of them was a multi-millionaire.  They were all upset about the fact that they'd had patients die because they couldn't afford medications that would have saved their lives.  One doctor told a story of such a patient, who told him frankly that he would rather die than impoverish his family completely to pay the better part of $1 million for medication.Another millionaire doctor, head of a research institution, told how he had been diagnosed with a rare and fatal kidney condition, for which the only even suspected cure was a drug regimen that cost $600,000.  He had that kind of money at hand so he's still alive.  His institute ran the numbers and analyzed the market and came to the conclusion the drug protocol should be more fairly priced at $450k.  Ha-ha-ha, I nearly wet myself laughing.  That's so-o-o-o-o much more affordable, right.  The CEO of a major health insurance company wrung her hands at the quandary we're in.  It went on and on and on, millionaire after millionaire wondering why medical care costs so much that the people who need it can't pay for it and even those who maybe could have to decide whether to impoverish their families to do it.They eventually concluded that it's more or less hopeless.  And they got back on their charter flights home, back to their 7-figure homes and jobs in 9-figure luxury palaces.

In reply to by hedgeless_horseman

Give Me Some Truth hedgeless_horseman Mon, 10/16/2017 - 12:36 Permalink

Re: "The dope is too damn high"My cure: Criminalize all drug sales (even Big Pharma drugs). Let the Mafia or gangs - the "black market" sell them. That's the only way the "free market" might kick in and prices would come down.The Prison/Justice System/Police Complex would love this too. Think of all the extra jobs this would create for them. 

In reply to by hedgeless_horseman

MrBoompi Mon, 10/16/2017 - 12:02 Permalink

Just another example of crappy machine-driven trading.  Everyone knows drug prices are way too high.  I guess the computers forgot this.  

LawsofPhysics Mon, 10/16/2017 - 12:02 Permalink

Go ahead, make drugs too expensive for the average peasant, the fuckers might actually wake up and get motivated to do something about the ongoing theft/fraud...Go ahead fucker, I triple dog dare you. Not going to happen...Stand by while SNAP payments double....

small axe Mon, 10/16/2017 - 12:07 Permalink

All is well -- Amazon is reportedly thinking about getting into the pharmaceutical biz.Prime shipping on all potions, and members get access to monthly opioid specials. Amazon is basing its business model on 18th century gin addiction in Britain, a time when the peasants were extremely content.

mc888 Mon, 10/16/2017 - 12:24 Permalink

You know what's really funny about this... I still remember that Commie piece of shit Bill Maher talking about Obamacare before it was illegally pushed through, saying "it's nothing but a blowjob for the insurance industry".Wonder what he has to say now that Trump cut off the illegal subsidies.

GoldHermit Mon, 10/16/2017 - 12:28 Permalink

I keep saying it and saying it...  drug stocks are one tweet or wisecrack away from getting hit.  Let's see where it all goes this time.  I will admit, the system can't go on as is.

Give Me Some Truth Mon, 10/16/2017 - 12:41 Permalink

Re: Trump looking to reduce government spending next budget cycle.Yeah, right.Trump and all all the "patriot" congressman who were going to fight raising the debt ceiling. Better put $50 billion in the tiller for next year's hurricanes too. How is the military going to fight wars in Afghanitan, Iraq, Syria, North Korea and Iran with government expenditures going down? Even if we abandon all of these said wars/occupations, military expenditures would go down?He's going to cut social security, Medicade, Medicare, government pensions, interest on the debt?He/they can't abolish the TSA, much less the Department of Education.Trump is going to "fight" Big Pharma, just like he is going to "fight" the military industrial complex, the Police State Complex, the higher education complex, the war on drugs complex ... the Fed ...Also, isn't the "next budget cycle" when Trump said he was going to fund - and build - the wall with Mexico? How much is that going to cost? That's new spending isn't it?    

jin187 Give Me Some Truth Mon, 10/16/2017 - 12:59 Permalink

The sad thing is that the wall is a drop in the bucket. Probably not even 3 days worth of government spending would be enough to cover it.

Not that it matters anyway. A damn wall isn't going to stop people from building tunnels, which we already have with no wall. The really bad people we want to keep out are the same cartel members that build the tunnels, or are paying cartel members for access to them. At most, the wall keeps out a few independent stragglers, and small time drug mules. Not like ISIS and Al-Qaeda operatives will see the wall, give up, and go home.

If we really want to stop illegal immigration, we should punish businesses that hire illegals just like individual criminals. Fuck this 2-3% of gross profits shit that we hit them with now. Hit them with a real punitive fine, like we do people. OJ got a judgment against him for 4x his net worth. People with DUI's usually get fines and fees that add up to half a year or more than their salary. People with fraud cases never get to work with money again. Why should big business be any different? If Google gets caught cheating the H1 visa system, fine them 500 billion dollars. Yeah, they'll probably go out of business, but fuck'em. That's the same attitude we take with common scum for relatively minor offenses.

In reply to by Give Me Some Truth

paulbain jin187 Mon, 10/16/2017 - 16:47 Permalink

-----------------------------------------------------    jin187 wrote:

If we really want to stop illegal immigration, we should punish businesses that hire illegals just like individual criminals. Fuck this 2-3% of gross profits shit that we hit them with now. Hit them with a real punitive fine, like we do people. OJ got a judgment against him for 4x his net worth. People with DUI's usually get fines and fees that add up to half a year or more than their salary. People with fraud cases never get to work with money again. Why should big business be any different? If Google gets caught cheating the H1 visa system, fine them 500 billion dollars. Yeah, they'll probably go out of business, but fuck'em. That's the same attitude we take with common scum for relatively minor offenses.

YESSSSSS!!!!  That is exactly what the federal government ought to do -- which is why it shan't happen, at least not under the Trump administration.  Neither Trump nor Attny. General Jeff Sessions would support this sort of action.  With respect to immigraion, they are both all talk and no action.    -----------------------------------------------------   

In reply to by jin187

Give Me Some Truth Is-Be Mon, 10/16/2017 - 13:38 Permalink

You say "defeatism," I say realism.I'm glad you think Trump (and Congress) WILL cut spending next budget cycle. Where will these cuts come from in your opinion? What will be the approximate dollar amount of these cuts?Other questions come to mind: Why in the world does Trump (or anybody) think that government spending should actually be cut? Can't the government just borrow and print money as needed to fund all expenditures? Isn't that what we've always done? Isn't that working just fine? I mean the economy and the stock market are soaring (as Trump tweets routinely). Why in the heck would he change anything?"Playoffs? Playoffs?""Cut? Cut?"Why? Spend. Print. Borrow. Spend. Print. Borrow. Spend. Print. Borrow.  Dow 40,000, baby!  

In reply to by Is-Be

techpriest Give Me Some Truth Mon, 10/16/2017 - 14:00 Permalink

I'm reminded of an open Senate seat a few years back, and I was with a group that was interviewing a potential candidate who was a, wouldn't you know it, used care salesman.

He did the same song and dance about how we needed to reduce spending, and I confronted him directly about the question of what, exactly, he is going to cut.

Spending cuts = reducing the role and scope of government.

He couldn't answer. But it didn't matter because the governor's pick (a fairly attractive woman at the time) got the nomination.

In reply to by Give Me Some Truth

InnVestuhrr Mon, 10/16/2017 - 12:33 Permalink

Trump Says "Drug Prices Out Of Control"YES YES YES YES YES YES YES YES THEY ARE !!!!!!!!!!!!!I lived a long time in Europe and traveled the world for 30 years, I KNOW that the cost of pharmaceuticals, MOST of which originate in the R&D of USA companies but may be manufactured outside the USA, cost FAR FAR FAR less outside the USA than inside the USA = once again Americans getting raped, pillaged and plunderd by USA politicians who are WHOLLY responsible for this corruption.Just ONE of the drugs that is essential to maintain my health and life expectancy costs over $800 per month, and being a scientist and engineer, I KNOW with certainty that the cost of manufacture (in Puerto Rico and Mexico) is just a TINY fraction of that price.USA desperately needs Revolution & Civil War v2 - hang ALL the politicians and reboot the government with exacting adherence to the principles of individual freedom and power OVER the government that the Founders intended.

Last of the Mi… Mon, 10/16/2017 - 12:44 Permalink

Prescription prices have been priced as "what the market will bear" now for a while. At least since '11 or so. ACA hid any sort of price discovery as to prescription prices (as it was supposed to do) and it's now all 50% or more ether. $140 for a bottle of KCl 20% is complete nonsense. It's salt water for God's sake, and I'm betting more than 90% of the drugs are priced with that mindset. One thing I can guarantee you is that the more people who get involved in the drug delivery process, and I'm talking insurance here, the higher prices go. You never, ever decrease prices by getting more people involved. And that is especially true of the government. Open up FDA regs so smaller companies can compete in the making of salt water and everything else and prices won't go down. They'll plummet. Same goes with the suboxone nonsense. Give those people 12 months to get off of it decreasing the dose by half every 90 days and you'll see markets react like never before as the responsibility is on the addict instead of society. I've actually had "people in the know" tell me that they will never decrease or stop Suboxone for the life of the patient as they will always go back to drugs. Trump bloviating about Rx prices may dent them a little, but that's all. Open up the markets to competition and quit covering the drug companies special interest with stupid laws that hinder the DEA. It's really just common sense.

DosZap jin187 Mon, 10/16/2017 - 13:51 Permalink

BINGO,On Medicare,prescripts were supposed to be lowered by Bush Jr.Here is proof that the system is rigged.(and hell yes Americans pay through the arse for the R&D,and then sell or give away the same meds WE pay markups of 1000%+ for,because SOMEONE has to pay it!.)I/we pay as much out of pocket for(w/D Plan,which we must pay 100% for) scripts,3,and an F plan to cover the 20% of Dr.s and hospitals Medicare doesn't pay,amounts to my wife and I with few health issues,(total of 6 Scripts between us) to fork over approx $14,000 a year PLUS 212.00+/- dollars a month from SS for Part B.Walk up to any drug store counter anywhere and IF you are under 65, you can grab fistful's of coupons for 50% or more off of scripts that WE are not allowed to use,we pay more Co Pays(after D plan pays, and Mediscare,than ANYONE under 65 does)Fixed income seniors, get NO breaks,while anyone who likely doesn't NEED these coupons get all they want at less than 50% of what we must pay.And the CAPPER for all Cappers, is the OUT of pocket pay out when a script is ordered,(this is after the SS deduction/the D Plan costs),the Feds add YOUR out of pocket script costs BACK into the amount allowed per year before you hit the MAGIC DO-NUT HOLE,$2,850.00, per person once you''re IN the HOLE, they benefits decease 50/70%,until you reach an out of pocket amount right at $5000.00(which the is called CATASTROPHIC, and the benefits go back to what you started with.

In reply to by jin187

techpriest jin187 Mon, 10/16/2017 - 14:07 Permalink

This might be a bit radical, but screw the co-pay model. Unless you are getting something that will run you more than $1,000 per month, you should be paying cash. This way, instead of complaining about co-pays you see what everything actually costs, and for most people this is incentive enough to shop around.

I know of at least one case where a doctor, learning he could also run a pharmacy from his practice (KS), decided to become a "Costco of pharmacy" and start charging 10-15% over cost for medicines. It turns out, that's a 90+% (sometimes 97%) savings for his patients, and by cutting out the insurance middleman he made more money too.

There are 90+% cost reductions all over the place, that aren't being realized because of the legal and regulatory structure. Realize them, and for most things you won't need insurance because $50 for treatment with no insurance needed is cheaper than a $20 copay with $700/month insurance.

In reply to by jin187

SummerSausage techpriest Mon, 10/16/2017 - 15:16 Permalink

You're referring to Atlas Medical Services.  This doctor did away with insurance companies and got lab costs down from $100 for a test to $1.95.  He shows other doctors how to do the samehttps://atlas.md/wichita/faq/An Oklahoma city hospital posts surgical prices online (I don't tink they take insurance either) and started a bidding war http://kfor.com/2013/07/08/okc-hospital-posting-surgery-prices-online/W… you take price discovery out of the market, it's an invitation for overcharging and underdelivering.

In reply to by techpriest

Aubiekong Mon, 10/16/2017 - 12:46 Permalink

Our healthcare system is one big anti consumer monopolistic price gouging circus.  There are laws on the books to protect the consumer but in the health care market they are not enforced.  Until we control and lower the cost of healthcare no insurance program is affordable...

Posa Aubiekong Mon, 10/16/2017 - 12:55 Permalink

Obama build in price gouging with the ACA. It's not only drugs: it's medical devices, scanners, supplies etc. Permission to gouge was baked in... a fact largely ignored.Healthcare in the US is trated as a rent-seeking monopoply. The solution is single payer with supplemental insurance PLUS cost controls... if we get into this seriously many sort of procedures have to be reviewed... PSA screeings, routine momograms etc... They call it "evidence based madicine"Trump-style "No Care" insurance schemes is not he answer an must be rejected... and of course, none of this flies with a growing economy with reall "full employment".

In reply to by Aubiekong

jin187 Posa Mon, 10/16/2017 - 13:11 Permalink

Over-treatment is a symptom of the way insurance is structured, and tort law. Ambulance chasers look at routine misdiagnosis the way Cookie Monster looks at a pallet full of Oreos. In addition to not getting sued for minor mistakes, over-treatment makes them more money because of more billable services. It's a win-win for the private doctors, lawyers, and pharmas, and a big fuck you to literally everyone else.

In reply to by Posa

techpriest Posa Mon, 10/16/2017 - 14:14 Permalink

Sorry, but single payer will send costs up astronomically. Paying $1,000/month more in taxes/inflation because $900/month insurance is too expensive is not a solution.

Insurance is for protecting from unexpected large expenses.

"Health care" already has the capacity to be cheap enough to buy without insurance, once the rent-seeking is removed.

If you cannot put aside $100/month for a health emergency in your 20s and 30s so as to cover a $2k-$5k deductible and the occasional $100 doctor's visit, that is not other people's fault. I was doing it when I was earning $1700 a month as a grad student, and so can you.

In reply to by Posa

Posa techpriest Mon, 10/16/2017 - 17:07 Permalink

It's true that it costs money to ensure medical care for the whole population instead of letting large numbers die prematurely for lack of access. But there are plenty of economies and revenue sources ... such as a Wall street sales tax to help defray costs.Cost-controls however are essential -- both fraud reduction, inappropraite treatment or care that doesn't work... isn't medically proven.  

In reply to by techpriest

Hubbs Mon, 10/16/2017 - 13:44 Permalink

The whole fucking health care system, and the whole country, for that matter, is out of control. I would rather burn it to the ground so I at least I would know where I stand.Trying to inquire about my insurance options through United Health Care's website, they don't even have prospective health insurance plan renewals searchable on their website. The web designers are idiots! The politicians are idiots. The whole system is in chaos. The only thing I can be certain is not just death and taxes, but that this health care monster will devour all of us before we die.....and I am a fucking doctor!