President Donald Trump has finally revealed his most favored nation drug price control plan – and it’s a real humdinger. It is full of government goodies and it pegs drug prices to OECD nations with similar per-capita GDP as the U.S. It may just help him win re-election…at the cost of innovation and patient access to drugs.
Health care price ceilings have obvious problems, like the rationing seen in Great Britain’s health care system or the 1999 Boston Consulting Group findings that drug price controls in several European nations dramatically slowed drug development. Contrast that with the U.S., which the Milken Institute found developed and produced nearly 60 percent of the world’s new medicines between 2001 and 2010.
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