H.R. 3 – Pharmaceutical Price Controls: No
H.R. 3 – Pharmaceutical Price Controls: No. This bill provides for the government to set prices for drugs sold in the United States – classic price controls by a different name. The problem is that price controls – which date back to Hammurabi’s Code – consistently and unerringly produce a shortage of whatever commodity they’re trying to control -- in this case, life-saving drugs. Companies not able to meet government-imposed price controls will simply cease selling drugs in the United States. The more likely outcome is that companies will dramatically cut back on research and development in order to fit within these price controls, which is why the Council of Economic advisers warns that we can expect 100 fewer life-saving cures to enter the market over the next decade as a direct result of this legislation. Drug prices ARE too high. Regulatory hurdles prevent rigorous competition in the drug market that produces higher quality and lower prices for consumers. The answer to the drug crisis is not more governmental interference, but less, which is why I support the alternative proposed by the Republican Study Committee.