President Trump has claimed that drug price discounts under his administration exceed 100%. This statement is mathematically impossible. Recently, Health and Human Services Secretary Robert F. Kennedy Jr. attempted to justify this claim during a Senate Finance Committee hearing.
When questioned by Senator Elizabeth Warren about discounts available on the TrumpRx website, Kennedy mentioned a “600% reduction” if a drug priced at $600 drops to $10. However, according to basic math principles, that figure is far from accurate. In reality, a drop from $600 to $10 is a reduction of 98.3%, not 600%.
To explain this further: if a drug costs $600 and is suddenly $10, you calculate the decrease by subtracting the lower price from the original price and then dividing that result by the original price. So, $590 (the difference) divided by $600 gives you 0.983, or a 98.3% decrease.
Mathematicians clarify that it’s impossible to have a price reduction greater than 100% while still charging a customer. Maryclare Griffin, an associate professor at UMass Amherst, mentioned that “it’s mathematically impossible” to go beyond that threshold while still requiring payment.
Moreover, a reduction of 100% would mean the customer pays nothing, while a 200% reduction would actually require the seller to pay the customer. Such outputs are nonsensical in the context of pricing.
Brooke Nichols, a health economist, emphasized that the only valid way to calculate percentage decrease is what we just outlined. Repeated claims of exceedingly high percentage drops misinterpret basic math and could mislead the public.
This isn’t an isolated event. Trump has previously cited discounts as high as 1,000%, an assertion that also falls into the realm of mathematical inaccuracies.
In light of these statements, it’s crucial for everyone—especially policymakers—to grasp basic economic principles. Misleading information can cloud understanding and guide public opinion in the wrong direction, particularly regarding healthcare pricing, an important issue affecting many Americans today.
For more context on drug pricing, you can refer to resources like PolitiFact and other reputable news sources.
