A Market-Based Approach to Prescription Drugs

Congress is once again attempting to figure out the rising cost of prescription drugs. Inevitably, every time this issue reaches the table, socialist proposals are there to meet it. For example: to counter free market principles, proposals like Nancy Pelosi’s H.R. 3 were pushed through the House late last year to give the government power to “negotiate” the price of drugs. But importantly, this “negotiating” essentially meant that the federal government would be setting drug prices from other countries, many of which use socialized healthcare systems. Truly lowering costs in this scenario is simply not realistic.

You have to ask yourself- what will the future of our health care system look like if our perspective drug prices are set to controls modeled after socialist systems? What happens to the innovation happening in our system? This is a slippery slope waiting to happen.

Fortunately, there are ways to address prescription drugs without implementing a massive overreach by the federal government. The Lower Costs, More Cures Act is a free market approach and it’s gaining ground. The bill uses the power of the marketplace instead of the power of the federal government – improving costs, transparency, and protecting innovation.

Injecting a market-based solution into our health care system is not going to solve things overnight, but the Lower Costs, More Cures Act will help get us there. Nearly the entire Nebraska House delegation is on board, and I hope they all support its passage. The bill encourages competition to help lower prices and gives Medicare patients a better understanding of what they are buying. We can improve the problem without hollowing out the effectiveness by bringing in the federal government.

Here are a couple good reads on the topic:
Rep. Dan Crenshaw: Innovation, Not Pelosi’s Radical Price Controls, Will Lower Drug Costs
Rep. Greg Murphy: A Second Opinion on Prescription Drug Policy
jesse dougherty
jdougherty@strategicelements.com

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