The Corner

Economy & Business

Today in Capital Matters: Public-School Decline and Drug Pricing

Jude Schwalbach of Reason Foundation writes about how public schools should adopt more open-enrollment policies:

In most states, where you live determines where you can go to school. This method of residential assignment intertwines property wealth and schooling because high-ranking public schools are often located in more expensive neighborhoods.

Open enrollment, however, can break down the barriers that prevent families from accessing public schools other than their residentially assigned one. This form of school choice allows families to enroll in any public school if there are open seats, thus weakening the connection between housing and schooling. Research from Texas and Florida shows that families in states with strong open-enrollment laws use the policy to find better educational opportunities for their children.

Joel Zinberg of the Competitive Enterprise Institute writes against price controls on Medicare drugs:

While critics decry the cost of a few new, specialty drugs, total drug spending growth (both outpatient and in-hospital) has been stable the last 15 years and has been lower than the growth in health-care spending. In fact, total U.S. drug spending as a percentage of health expenditures is lower than the average percentage of eleven developed countries.

The Congressional Budget Office (CBO) reported that real per capita spending on prescription drugs began to level off in the mid 2000s. The CBO found that the average net price of a prescription — the price after subtracting the discounts and rebates off list prices that manufacturers provide to private and government buyers — fell from $57 in 2009 to $50 in 2018 in the Medicare Part D program and from $63 to $48 in the Medicaid program.

Dominic Pino is the Thomas L. Rhodes Fellow at National Review Institute.
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