Since our inception, we have advocated for increasing free market principles in the healthcare sector. Since the advent of Obamacare, the American healthcare industry has begun creeping towards socialized medicine - a trend in the wrong direction.
Now our leaders in Washington are urging the implementation of another anti-market proposal known as a most favored nation (MFN) clause or an International Pricing Index (IPI). This basic idea behind this policy is that in order to lower drug prices, the government would set the prices of prescriptions based on the prices of the medication in other nations.
This is not the right path for America.
Just like any other drug pricing scheme, this idea violates everything we support in a free market system. It would slow medical innovation, threaten American jobs, and undermine conservative opposition to Medicare-for-All.
America has been a leader in medical innovation for years now. We develop some of the most revolutionary cures to diseases of all kinds. This type of research and development is largely funded by the profits made by our pharmaceutical companies. It’s not greed, it’s not gouging - it’s business. And it’s a facet of the industry we all benefit from!
An addition of IPI to our drug pricing model would stifle this innovation and take away the incentive for companies to create new revolutionary medications!
International Price Indexing also threatens jobs!
As Grover Norquist wrote in RealClearHealth.com:
“Medical innovation is enormously beneficial to workers and to the economy. Manufacturers invest over $100 billion in the U.S. economy every year, directly supporting over 800,000 jobs. When indirect jobs are included, this innovation supports 4 million jobs and $1.1 trillion in total economic impact. Pharmaceutical jobs are also high paying – the average compensation is over $126,000 – more than double the $60,000 average compensation in the U.S.”
If we were to implement a policy that stifles R&D, we would be cutting off the demand for all the aforementioned jobs.
Finally, the adoption of this drug pricing plan brings us ever closer to “Medicare-for-All” furthering the Left’s agenda. Price controls are a hallmark of government controlled healthcare and the advent of IPI would bring us closer to that less than ideal set up.
Most free market loving people would agree that the government has no place in setting prices or controlling healthcare. It was true when we debated obamacare and it’s true today.
Though some in Washington may push for this as a way to “lower prices”, it will really only be a transfer of the cost to average taxpayers.
IPI is the wrong path for the US healthcare system. It is bad for the economy, jobs, healthcare system and brings us one step closer to medicare for all!
We all need to step up and oppose the International Pricing Index!