The Road to Price Controls

The pharmaceutical industry was first out of the gate to cut a deal with the White House and Senate Democrats, limiting the new costs to their industry in exchange for funding ads supporting ObamaCare. But what seemed like a good deal to the industry actually creates substantial disincentives to finding new cures and developing innovative new drugs. “It will inevitably increase drug costs inside Medicare, inviting the kind of politically driven price controls that discourage investment. For good measure, the Obama health plan is full of new tools that will enable Medicare to set rules not only on prices, but the clinical criteria for accessing new medicines.”