Tom Price bought stocks and took official action to protect pharmaceutical profits on the same day
Donald Trump’s Health and Human Services Secretary Tom Price didn’t just buy stocks in healthcare companies while he was in a position in Congress to know how legislation would affect them. He didn’t just lie to the Senate about it. It turns out to be much worse than that, and ProPublica has the story. On March 17, 2016, Price’s stockbroker bought him as much as $90,000 in stocks at six pharmaceutical companies.
The same day as the stock trade, Price’s legislative aide, Carla DiBlasio, emailed health officials to follow up on a request she had made to set up a call with Patrick Conway, the agency’s chief medical officer. In her earlier emails, DiBlasio said the call would focus on payments for joint replacement procedures. But that day, she mentioned a new issue.
“Chairman Price may briefly bring up ... his concerns about the new Part B drug demo, as well,” she wrote. “Congressman Price really appreciates the opportunity to have an open conversation with Dr. Conway, so we really appreciate you keeping the lines of communication open.”
The proposed rule would have changed how doctors were reimbursed by the government for Medicare prescriptions, and:
The six companies that Price invested in were steadfastly opposed to the rule. McKesson formally warned investors in a Securities and Exchange Commission filing that such a change could hurt share prices. The firms lobbied the government to kill the plan.
And at two of the six companies Price invested in, people who used to work for the congressman were part of the lobbying effort.
Price has claimed he didn’t know what his stockbroker was doing when, but he also hasn’t given us a whole lot of reason to believe him.