tom price (a Republican Representative from Georgia selected by Donald Trump to lead the Department of Health and Human Services), has been accused of making an unethical medical stock purchase last year. House records suggest he bought from $1,000 to $15,000 worth of shares in Zimmer Biomet, a medical device company, in March. According to CBS News, Price introduced legislation in favor of the company soon after the purchase. The news comes just days before Trump’s inauguration.
On Wednesday, Tom Price will provide testimony during his Senate confirmation hearing.
Concerns about his insider trading were first reported on Monday, by CNN. Senator Chuck Schumer (D-New York) said the next day that Price’s actions may be illegal, and called for an investigation. After purchasing stock, Price introduced a bill that would protect the medical device company against regulations that industry analysts said could adversely affect it. Additional records show the organization then donated funds to aid the representative’s re-election.
Challenging Trump’s pick to replace Obamacare
Chuck Schumer, regarding the stock purchase, said to CNN, “If he knew about it, it could very well be a violation of the law.” The purchase of company stock could have been a potential violation of the STOCK Act, which was enacted to stop members of Congress from conducting insider trading.
This is not the first time Price has been accused of questionable trading. In December, The Wall Street Journal reported that, over four years, he traded over $300,000 in stocks and then supported healthcare-related bills in favor of the respective organizations.
Bernie Sanders weighs in
Vermont Senator and former presidential candidate Bernie Sanders was scheduled to meet with Tom Price on Tuesday afternoon.
Sanders has a keen interest in discussing changes to Obamacare. Repealing the affordable care act is one of the top priorities of the new administration. A Congressional Budget Report will focus on the controversial Obamacare repeal discussion and the potential harm it could do.
