Those price caps are permanent. And because a new batch of drugs will be hit with those caps each year, the potential market for generics will gradually shrink.
The unspoken assumption behind the prescription drug price controls at the heart of the Democrats’ August 2022 Inflation Reduction Act (IRA) is that the pharmaceutical market is broken.
According to this view, drugmakers have the power to charge whatever they want. Only a sweeping system of government price-setting can put the average patient on equal footing with “Big Pharma.”
But new research from investment bank Leerink Partners’ Center for Pharmacoeconomics tells a different story — and shows how the IRA’s price controls could significantly harm patients in the long term.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.
How Price Controls Make a Healthy Drug Market Sick
Sally C. Pipes
Those price caps are permanent. And because a new batch of drugs will be hit with those caps each year, the potential market for generics will gradually shrink.
The unspoken assumption behind the prescription drug price controls at the heart of the Democrats’ August 2022 Inflation Reduction Act (IRA) is that the pharmaceutical market is broken.
According to this view, drugmakers have the power to charge whatever they want. Only a sweeping system of government price-setting can put the average patient on equal footing with “Big Pharma.”
But new research from investment bank Leerink Partners’ Center for Pharmacoeconomics tells a different story — and shows how the IRA’s price controls could significantly harm patients in the long term.
Read the entire Newsmax op-ed here.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.