Finalization of Drug Price Controls a Grave Mistake

For Immediate Release
November 20, 2020
Contact: Grace Morgan
(202-855-4380)

Washington, D.C. – The Taxpayers Protection Alliance (TPA) criticized the Trump administration for finalizing onerous and destructive price controls on medications covered under Medicare Parts B and D. On July 24, President Trump signed an executive order tethering drug reimbursement rates set under Medicare to artificially low prices charged by countries with socialized healthcare systems. Drug prices under Medicare Parts B and D were ordered to be set lower than the prices set in other developed countries unless drug manufacturers agreed to a “deal” before August 24. That deadline has since passed, and now President Trump is moving forward with price caps on critical drugs regardless of the impact on healthcare choices, drug supply, or innovation.

TPA President David Williams offered the following statement:

“This last minute effort by an outgoing administration is the exact kind of regulatory overreach the Trump administration vowed to fight against. It hands a major progressive victory to an incoming Biden administration vowing to fundamentally alter our healthcare sector.

“Adding insult to injury on the timing is the fact that an American company, Pfizer, has just announced that a successful vaccine against the novel coronavirus is right around the corner. Pfizer, receiving no direct funding from the federal government, put up its own resources to deliver the world hope in record time. Had the price controls instituted by this administration been in place prior to the start of the pandemic, they would have likely jeopardized the ability for Pfizer to undertake this effort.

“While there is undoubtedly a problem with healthcare pricesin America, failing to understand that built into the price of our prescription drugs is the enormous cost of lifesaving research and development means we will see less innovation and life-saving medications going forward. TPA will continue to fight against the implementation of this rule and we call on Congress to step up to the plate and stop this egregious administrative excess.”

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