No, President Biden will not impose a 95% tax on prescription drugs

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A viral Facebook post claimed that President Joe Biden would impose a 95% tax on prescription drugs to reduce health care costs in the United States.

The post was released in late October and features an image of Biden with $ 100 bills floating in the background.

“Say no to Biden’s 95% tax on your prescriptions,” the image read.

A caption accompanying the message states that “only in Washington can you promise to ‘control health care costs’ by imposing a 95% tax on prescription drugs.”

The account behind the post, the Center for a Free Economy, describes itself as a conservative, nonprofit organization that advances “the cause of free market public policy reforms.”

We reached out to the organization regarding its Facebook post, but did not receive an immediate response.

The post was reported as part of Facebook’s efforts to tackle fake news and disinformation on its news feed. (Learn more about our partnership with Facebook.)

Biden’s plan to cut healthcare costs does not include a 95% tax on prescription drugs. It includes an excise tax on drug companies – not consumers – if they don’t sell drugs at prices negotiated with Medicare.

Healthcare was one of Biden’s main platforms during the 2020 presidential election, where he vowed to lower the overall cost of healthcare in the country.

Biden pledged to reduce the cost of prescription drugs by up to 60% in a campaign speech on November 2, 2020.

Biden went on to explain how he would lower the cost of prescription drugs through the Build Back Better program – by allowing Medicare to negotiate prices with drug companies.

The negotiations would apply to drugs that seniors receive through Medicare Part D and drugs administered in a doctor’s office through Medicare Part B, according to a White House statement.

Biden said it would also lower drug prices for people with private health insurance, not just Medicare beneficiaries. His plan would require drug companies to sell their products to people affiliated with employer plans at the same prices they sell them to someone on Medicare or face a financial penalty.

“This means that drug companies would have to sell their drugs to all distributors at Medicare prices or face a 95% excise tax,” the president said in August.

The tax would be levied directly on a company’s drug sales, not on consumers.

The Build Back Better bill passed the House on November 19, with Medicare’s ability to negotiate drug prices intact, and awaits Senate approval.

Our rating

A Facebook post claims Biden would cut healthcare costs by imposing a 95% tax on prescription drugs.

Biden proposed a plan that would allow Medicare to negotiate the price of certain prescription drugs with drug companies, which he said would lower drug prices for Medicare beneficiaries and those with private insurance. .

If drug companies don’t negotiate with Medicare, they could face an excise tax of up to 95%, according to his proposal. Prescription drugs would not be taxed.

We assess this claim as false.

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