Medicare Drug Pricing Changes Could Be Coming: Time to Ditch Pharma Stocks?
Two types of stocks have performed well overall so far this year as the broader market has tanked. It makes sense that energy stocks would be up, considering the high prices of oil and natural gas. Several big pharmaceutical companies have also beaten the market in 2022 as investors viewed them as safe havens.
However, those particular havens might not be so safe in the not-too-distant future. Major Medicare drug pricing changes could be coming. Is it time to ditch pharma stocks?
The Inflation Reduction Act of 2022 -- a new piece of compromise legislation hammered out by Senate Majority Leader Chuck Schumer of New York and moderate Democratic Sen. Joe Manchin of West Virginia is a smaller successor to President Joe Biden's Build Back Better Act. The legislation still attempts to address a wide variety of issues, including climate change, debt reduction, inflation, and high prescription drug costs. And Manchin's ideas on how to reduce the costs of prescription drugs have been floating around on Capitol Hill for years.
Source Fool.com
