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The Big Picture
As we rapidly approach the holiday season, Democrats are in a mad dash to see their high-spending Big Government Socialism Bill passed through Congress. A grab-bag of left-wing priorities, this tax and spend package rewards Nancy Pelosi’s political allies while leaving the American people in the dust.
The multi-trillion-dollar reconciliation package includes a drug pricing scheme that purports to make medicine more affordable but actually does the opposite. The new drug pricing provisions have a disproportionate impact on the generic and biosimilar markets, the very products that drive the cost of medication down.
Why it Matters
Despite the policy’s intention of lowering treatment costs, the drug pricing proposals in the Democrats’ multi-trillion-dollar Big Government Socialism Bill disproportionately target the very products that lower costs. Discouraging investment and pushing products out of the market that would otherwise provide millions of Americans with access to effective and low-cost treatments is a recipe for disaster.
The price of something is not simply an arbitrary number that the government can forcibly change. Instead, price is the value placed on a product that results from market forces and human behavior. Although lowering the cost of medicine is a worthy goal, heavy-handed government policies are entirely the wrong way to go about it.
We should be embracing the development of new treatments and low-cost generics. Unfortunately, these policies are an attack on generics and biosimilars that will inevitably make treatments more expensive and scarce.