November 23, 2024
Doug Wheeler
At first glance, government-imposed price controls on prescription drugs seem to offer relief for patients struggling with high costs. However, the hidden consequences of price controls paint a different picture. By stifling innovation and restricting access to life-saving treatments, such government overreach leaves patients with fewer options and less control over their health care.
The Biden Administration’s Inflation Reduction Act (IRA), which introduced federal price controls for prescription drugs under Medicare, has significantly expanded the government’s role in healthcare. This expansion has driven costs up on a national scale. Since the IRA’s passage in 2022, prescription costs have actually risen by over 30% nationwide.
Furthermore, the federal government’s price controls disincentivize innovation and result in fewer resources to bring drugs to market. This domino effect makes medicines harder to access and, in some cases, halts drug development altogether. Consequently, patients are left with fewer choices and less ability to obtain the treatments they depend upon.
Unfortunately, policies similar to those enacted by the Biden Administration have been considered here in Florida. In recent years, state policymakers have explored International Drug Reference Pricing, a form of price control that threatens to further erode the free-market foundation of our health care system. Under this policy, the U.S. would set drug prices based on those established by other countries, effectively giving foreign governments the power to decide the value of medications for us here at home and hindering innovation even further.
The impact of government price controls in foreign nations has significantly impacted patients. In countries like Canada, France, and Germany, which have strict price controls, patients have faced low availability of drugs, hindering access to care and causing an overall decline in manufacturing and pharmaceutical resources. In contrast, American consumers have had access to over 85% of nearly 500 new medicines launched since 2011.
Additionally, on average, patients in Canada and France wait almost a year and a half longer than U.S. patients to access new treatments for cancer and rare diseases. In 2019, nearly half of European patients said they or a family member experienced medicine shortages that directly impacted their health, with 42% reporting delays in care or treatment.
We can’t let this happen in our country, which prides itself on a free market energized by consumer choice. The idea of allowing foreign governments or federal agencies to dictate the price of prescription drugs conflicts with our country’s, and our and state’s, principles of limited government and economic freedom.
Our way forward is clear: We must oppose policies that try to tackle complex issues with heavy-handed government intervention. It is time to put Florida patients first, safeguard our state’s economic vitality, and reinforce the free-market values that have driven our nation to greatness.
