Success is found in the private sector

Wednesday, July 10, 2019
 | 
Chris Woodward (OneNewsNow.com)

MedicareSenator Ron Wyden (D-Oregon) wants to cap seniors' drug costs in Medicare Part D, but not everyone sees positives to that plan.

Senator Wyden has suggested that prescription drugs cannot increase in price any faster than the rate of inflation, but Merrill Matthews, Ph.D., of the Institute for Policy Innovation says inflation has actually been very low.

"This is just basically a price control, which tends to be the Democrats' fallback mechanism on trying to control spending on anything ... and price controls just never work," says Matthews. "You either get people being rationed from whatever the price control is hitting, or they find alternative ways to go around to get what they want at some kind of affordable price."

Matthews

If a drug company raises prices faster than inflation, then they have to pay a penalty. That, says Matthews would undermine innovation.

"Developing a new drug is risky and expensive," he explains in a Townhall op-ed. "It costs about $1.7 billion out of pocket to bring a new drug to market, and only a handful of drugs actually make it through the clinical trials."

While he agrees that lowering the cost of prescription drugs for America's seniors is a noble goal, Matthews believes there are ways to do this without depriving patients of future cures.

"Medicare Part D is unique among entitlement programs," says Matthews. "What has made Part D so successful is private sector competition."

Comments

We moderate all reader comments, usually within 24 hours of posting (longer on weekends). Please limit your comment to 300 words or less and ensure it addresses the article - NOT another reader's comments. Comments that contain a link (URL), an inordinate number of words in ALL CAPS, rude remarks directed at other readers, or profanity/vulgarity will not be approved. More details

SIGN UP FOR OUR DAILY NEWSBRIEF

SUBSCRIBE

VOTE IN OUR POLL

What would you say is Joe Biden's biggest liability in his quest for the Democratic nomination?

CAST YOUR VOTE

GET PUSH NOTIFICATIONS

SUBSCRIBE

LATEST AP HEADLINES

Parachutists jump over Dutch heath to mark WWII operation
Hong Kong protesters burn flag, police fire pepper spray
Area 51 events mostly peaceful; thousands in Nevada desert
Trump, in call, urged Ukraine to investigate Biden's son
Hurricane Lorena threatens Mexico's resort-studded Baja
US to send troops to Saudi Arabia, hold off on striking Iran
Houston area sees relief, rescues after Imelda leaves 4 dead

LATEST FROM THE WEB

'Almost impossible mission': The 8,000-mile nonstop flight to save a US soldier's life
School cancels football game days after cheerleaders are punished for pro-Trump banner
Trey Gowdy rips 'deeply partisan' Adam Schiff
How Elizabeth Warren used fake Native American identity to get ahead
New details reported on Trump-Ukraine call as Dems clash with White House on complaint

CARTOON OF THE DAY

Cartoon of the Day
NEXT STORY
Bernie, Warren push universal health, Green New Deal vs. field

Sanders, Warren embracingThe Democratic debacle continued Tuesday night in Detroit, Michigan, during the second presidential primary debate, as ultra-leftists Sen. Bernie Sanders (I-Vt.) and Sen. Elizabeth Warren (D-Mass.) took on the other eight candidates defending universal healthcare and the Green New Deal, which many conservatives believe would bankrupt America.