Congressional Democrats are pushing through a plan that shift $288 billion away from Medicare drug spending and into Obamacare plans and Green New Deal ventures. Extended Obamacare plans from the pandemic expire around the midterm elections. Premiums will likely skyrocket at a critical time: the midterm elections.
The plan will authorize the federal government, through Medicare Part D and B spending, to hit drug makers with a 95 percent tax on total sales if they fail to lower drug prices to the satisfaction of federal regulators. One economic study found drug research and development fell by 18.5 percent. This tax will also lead to supply shortages of pharmaceuticals. Dems are selling the plan as “drug negotiation,” but Phil Kerpen, president of American Commitment, tells AnneMarie Schieber that it’s a classic mob-style ‘offer you can’t refuse.’
The drug price control measure is being salvaged from the Build Back Better bill that collapsed in Congress a few months ago. Given the upcoming mid-term election, it is likely the Dems will succeed in getting it through. Sen. Joe Manchin is on board, prompted after the Dems changed the name of the bill to the “Inflation Reduction Act of 22.” Kerpen says there is nothing inflation busting about drug price controls. The key to fighting inflation is increasing supply. Kerpen explains how this bill will send a huge chill through the pharmaceutical industry. Companies will not develop drugs if they think the government will dictate the price.
See Kerpin’s latest blog post: