Reframing Drug Price Regulation in the U.S.: Using Tools That Work

Excerpt:  “The cost of drugs to payers and consumers is a staple hot button in the American political landscape. Despite ample evidence as to what has worked and what doesn’t, changes in drug pricing policy have largely ignored the economic evidence of spill-over effects from government regulation and price controls on the private market. … The evidence suggests that the overregulation of pharmaceutical product prices has not lowered costs to society as a whole. Rather, the literature has shown features of government price setting—hidden fees, nontransparent pricing and barriers to competition—have corresponded with higher drug prices and costs.”