For Socialized Drugs Just Get in Line…
We all like lower prices. But how we get them does matter. Advocating for government control of prices and wages might not be such a good idea. Implementing wage and price controls is turning our economy over to the government. Socialist style price controls on medicine is bad policy and will not end well.
Price controls are bad for American consumers. They will stifle medical innovation. In the end, if the United States does not continue innovating, then who else will?
How the economics works
Sixty percent of pharmaceuticals are developed in the United States. We lead the world in medical research and innovation. Drug prices are set so manufacturers can recover the costs of inventing these new drugs and bringing them to market. If American drug innovators can no longer make money inventing lifesaving drugs, they simply won’t do it. They will do other things that make a better return.
Price controls not only prevent new drugs from coming to market. They will also cause shortages of prescriptions already in use. We have seen price controls interfere with supply and demand before. They cause shortages in other areas like wages and housing. Drug price controls will be more of the same.
Government mandated price controls on prescription drugs will cause drug shortages. This will be yet another empty political gesture. It sounds nice on a campaign ad. Unfortunately, in real life it hurts the average American family. Lowering prices through the free market will take hard work. We need to make the tough decisions to deliver for the American people.
There is a movement to have the Department of Health and Human Services (DHHS) to control drug prices. The plan is for DHHS to use an international index. This would determine drug prices through Medicare Part B. It would include vaccines and cancer medications.
Commonsense tells you the plan is logically challenged
The index is based on their costs in other countries. Many of the countries in the index have socialized health care systems. The problem with that is they already use artificial drug prices. There is government interference in their pricing mechanism. Their health care systems have long wait times and less availability.
Rising prescription drug prices are an issue, but we must be thoughtful about the solution. DHHS has no right to make economic decisions for us. The Constitution requires Congress to make our laws. Agencies help enforce them, not the other way around.
No where in the Constitution does it say passing the buck is okay. History has proven time and again that price controls do not work. Governmental economic meddling is what created the current system. Let us try something new. It does not cost a single tax dollar. Let’s allow the free market to work.