The Trump administration’s focus on lowering drug prices is understandable. But price controls are the wrong prescription.
In a May 12 executive order, President Trump announced a “most favored nation” policy that intends to lower prescription drug prices.
Among other things, the order directed the Secretary of Health and Human Services to “communicate most-favored-nation price targets to pharmaceutical manufacturers to bring prices . . . in line with comparably developed nations.” The Trump administration wants to peg U.S. drug prices to the lowest price available in our peer nations.
Other countries have lower prices on drugs because their governments forcibly cap them. Most favored nation amounts to the importation of socialist foreign price controls. As a matter of principle, the U.S. government should not have the power to dictate the prices of goods and services in a free society.
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.
Should the Government Control Drug Prices? No…
Sally C. Pipes
The Trump administration’s focus on lowering drug prices is understandable. But price controls are the wrong prescription.
In a May 12 executive order, President Trump announced a “most favored nation” policy that intends to lower prescription drug prices.
Among other things, the order directed the Secretary of Health and Human Services to “communicate most-favored-nation price targets to pharmaceutical manufacturers to bring prices . . . in line with comparably developed nations.” The Trump administration wants to peg U.S. drug prices to the lowest price available in our peer nations.
Other countries have lower prices on drugs because their governments forcibly cap them. Most favored nation amounts to the importation of socialist foreign price controls. As a matter of principle, the U.S. government should not have the power to dictate the prices of goods and services in a free society.
Read the 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.