JCNF Press ReleaseAugust 15, 2024
JCNF Reacts to Government Price Controls on Medicine, White House Stunt to Mask Price Hikes
Washington, D.C. (August 15, 2024)—Today, the Biden administration released the details for prescription drugs that fall under the federal government’s new price control scheme. The newfound authority was granted to the Centers for Medicare and Medicaid Services (CMS) as part of the misguided Inflation Reduction Act, federal legislation that was signed into law in 2022.
The consequences far outweigh the potential near-term benefits of forcing companies to offer medicine at a fraction of the market price through Medicare Part D. The move blunts incentives for drugmakers to develop new lifesaving treatments, therapies, and vaccines, as well as increases out-of-pocket costs and limits plan choices for some seniors. Average Part D premiums are already 21 percent higher this year compared to 2023.
Now, new reporting shows the Biden-Harris administration is attempting to hide Medicare premium hikes leading up to the election with billions of dollars of taxpayer-funded subsidies. The scheme is similar to Democratic efforts to continuously extend and expand Obamacare subsidies to paper over the true cost of coverage, which has doubled since Obamacare took effect.
Elaine Parker, President of the Job Creators Network Foundation, released the following statement:
“Manipulating the free market rarely ends well and the Biden-Harris administration’s efforts to apply government price controls on prescription drugs is no exception. The policy will harm the very seniors it is intended to help by reducing choices, increasing costs, and slowing medical innovation. Now, the federal government is using taxpayer dollars to mask its policy mistake ahead of November. Rather than devising a series of smoke and mirrors to hoodwink Americans, policymakers can legitimately improve healthcare by fostering choice, transparency, and competition within the system.”
