On January 16, 2017, CNN broadcast a story by Manu Raju, titled “First on CNN: Trump’s Cabinet pick invested in company, then introduced a bill to help it”, which omitted facts and drew conclusions in an effort to attack President-Elect Donald Trump’s designee for Secretary of Health and Human Services, Dr. Tom Price.
The facts were available to CNN through House Financial Disclosure Filings. Dr. Price’s position on the Comprehensive Joint Replacement demonstration, which date back to fall 2015, is also a matter of public record.
The facts are:
Dr. Tom Price has a diversified portfolio with Morgan Stanley in a broker-directed account. The portfolio includes both health care and non-health care related stocks.
Dr. Price’s Morgan Stanley financial advisor designed his portfolio and directed all trades in the account. Pursuant to the arrangement with Morgan Stanley, the financial advisor, and not Dr. Price, has the discretion to decide which securities to buy and sell in his account.
Dr. Price’s financial advisor periodically rebalances his portfolio to ensure proper diversification. On March 17, 2016, Morgan Stanley undertook a comprehensive rebalancing of Dr. Price’s portfolio. In the course of that rebalancing, the advisor purchased 26 shares of Zimmer Biomet, worth $2,697.74, on behalf of Dr. Price.
Dr. Price learned of the purchase of Zimmer Biomet on April 4, 2016, when his financial advisor sent him a list of trades to be disclosed on his House Periodic Transaction Report (PTR).
Dr. Price submitted the PTR reflecting the March trades on April 15, 2016.
Dr. Price began work on his legislative effort to delay the comprehensive joint replacement demonstration project in 2015 in order to preserve treatment options for patients. He sent a Dear Colleague letter regarding this effort on September 21, 2015.
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