ICYMI: Debunking Drug Price Myths
The Wall Street Journal sets the record straight surrounding the dangerous and reckless socialist prescription drug price controls in President Biden and Democrats' "Inflation Reduction Act" (IRA).
The House Budget Committee Health Care Task Force has been leading the way in highlighting the dire consequences of the Democrats' drug price control scheme on patients and tax payers.
Health Care Task Force Chair Michael Burgess M.D. (R-TX) issued the following statement on the impact of IRA drug price controls:
“In light of the undeniable facts surrounding drug pricing and the imminent drug 'negotiations' compelled by the Inflation Reduction Act, the evidence is crystal clear: we're facing a hostage situation. This situation endangers timely access to life-saving treatments for Americans and obstructs crucial research and development that drives our biomedical innovation. We cannot afford to relinquish our competitive edge to China and undermine the hopes of patients seeking new cures.
I have already heard from community clinics in my district that this bill is affecting the care and drugs they provide to low-income and underserved individuals. The time has come to reject these misguided price controls and prioritize the well-being of our citizens and the future of American health care.”
Four Key Points from the Piece:
1. Americans have earlier access to new treatments than the rest of the world.
“Most [drug companies] seek regulatory approval in the U.S. before countries with socialized health systems that demand steep discounts. Approval came 468 days earlier in the U.S. than in Canada for the 218 drugs authorized in both countries between 2013 and 2019, according to the Fraser Institute. Waiting 15 months longer to get access to a new drug may not sound like a big deal. But if you have a debilitating disease, even a few months can make a difference in your prognosis.”
2. The free market encourages drug makers to invest drastically more in research and development in America than anywhere else.
“According to the National Science Foundation, drug makers spent $74.6 billion on R&D in the U.S. in 2018 (the most recent data), compared to $13.7 billion in China, $7.1 billion in Germany and $658 million in the U.K. Even adjusting for GDP, the U.S. draws far more R&D investment than other countries.”
3. America’s leading role in biomedical innovation enables robust clinical trial participation.
“In addition to boosting jobs, this enables sick Americans to participate in trials for experimental treatments like gene therapies and mRNA cancer vaccines. Europeans and Canadians travel to the U.S. to participate in trials and access breakthrough treatments.”
4. Price controls jeopardize America’s leadership in biomedical innovation and give our enemies an edge.
“The alternative could soon be China. Beijing is seeking to rival the U.S.’s world-leading biotech industry. The same folks who fret about America losing its innovative edge to China support policies that will handicap the U.S. pharmaceutical industry.”
The Bottom Line: Biden’s price controls disincentivize the development of new cost-effective therapies, jeopardizing the medical innovation patients depend on and hamstringing efforts to lower overall health care costs. Democrat price controls will also slow access to life saving medicines, putting lives on the line now and well into the future. Many patients don’t have that luxury of time and will suffer the consequences of these misguided policies.
House Budget Committee Republicans are putting patients first by leading the fight against big government stifling American innovation.
