Democrats are looking for ways to fund their $ 3.5 trillion reconciliation bill, and one of the plans is to control prescription drug prices. If adopted, these policies would be of great harm to patients. Far from saving money, price controls would make better health more expensive.
White House Biden has proposed requiring Medicare to “negotiate” drug prices. Businesses face a sales tax of up to 95% if they don’t cede the government price, which means it’s not a negotiation but a demand. Pharmaceutical companies should offer the same rates to commercial insurers. The plan would also tie price increases to inflation, which would only translate into higher prices for drugs at launch.