Democrats’ Medicare Drug Price Control Expansion Could Threaten Medical Innovation

Storm clouds are gathering for Republicans ahead of next month’s midterm elections. If the forecast holds, a divided government could leave Washington gridlocked for two years. Yet one policy idea being floated on Capitol Hill may find support from both congressional Democrats and the White House during the stalemate. For those who favor limited government and competitive markets, the prospect is unnerving.

In 2022, President Joe Biden and his allies in Congress passed the Inflation Reduction Act, sprawling legislation that established a government price control scheme. The law requires that drugmakers “negotiate” prices with the feds for some medications covered by Medicare. “Negotiate” is a buzzword used to avoid the stink of government coercion. But in reality, “strong-arm” fits better.

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Tom Price

Tom Price served as the 23rd Secretary of Health and Human Services and is a former Republican member of Congress from Georgia.

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Storm clouds are gathering for Republicans ahead of next month’s midterm elections. If the forecast holds, a divided government could leave Washington gridlocked for two years. Yet one policy idea being floated on Capitol Hill may find support from both congressional Democrats and the White House during the stalemate. For those who favor limited government and competitive markets, the prospect is unnerving.

In 2022, President Joe Biden and his allies in Congress passed the Inflation Reduction Act, sprawling legislation that established a government price control scheme. The law requires that drugmakers “negotiate” prices with the feds for some medications covered by Medicare. “Negotiate” is a buzzword used to avoid the stink of government coercion. But in reality, “strong-arm” fits better.