Washington: US President Donald Trump signaled a direct challenge to insurance companies as part of his plan to lower prescription drug prices, arguing that savings should flow directly to patients.
“The money should be paid not to the insurance companies, directly to the people,” Trump said on Friday.
Trump made the remarks alongside HHS Secretary Robert F. Kennedy Jr., Commerce Secretary Howard Lutnick, CMS Administrator Mehmet Oz and FDA Commissioner Marty Makary, with pharmaceutical executives also in attendance.
He accused insurance companies of capturing excessive profits under the current system. “They have gotten so rich by receiving money and really much, far, far more money than they’re entitled to,” Trump said.
Trump said he would convene insurance executives to push for changes. “I’m going to call a meeting of the big insurance companies,” he said.
Pharmaceutical leaders attending included GSK CEO Emma Walmsley, Gilead CEO Dan O’Day, Merck CEO Robert Davies, Bristol Myers Squibb General Counsel Cari Gallman and Amgen Executive Vice President Peter Griffith.
Health Secretary Kennedy said the administration’s actions would have real-world impact.
“We’ve got moms with sick children who cannot afford their medications,” Kennedy said.
Trump said drug prices were a major driver of overall healthcare costs. “This will have a tremendous impact on the reduction of health care,” he said.
He declined to take questions following the announcement, describing the moment as historic. “This is the biggest statement of all,” Trump said.
Prescription drug pricing plays a central role in Medicare, Medicaid and private insurance spending in the United States, with insurers and pharmacy benefit managers acting as key intermediaries.
Efforts to redirect savings directly to patients could significantly alter the structure of the US healthcare financing system.
