Sen. Mike Lee (R-UT) introduced the Protecting Drug Innovation Act to roll back the federal government’s authority to set drug prices covered by Medicare. The power to set drug prices was a key component of the Democrats’ so-called “Inflation Reduction Act” that passed through Congress without a single Republican vote.
Sen. Lee’s legislation follows a recent report by the Joint Economic Committee that finds shortages, rationing, quality reductions, and higher inflation always accompany government attempts to control prices.
The non-partisan Congressional Budget Office projects price control provisions of the Inflation Reduction Act will lead to the introduction of fifteen fewer life-saving drugs over the next thirty years. The JEC report concludes this will result in the equivalent of up to 1.9 million people losing a full decade of life over the next 30 years.
Of the bill, Sen. Lee said, “Price controls never work. Instead, they exacerbate the problems they seek to resolve. Mandating fixed prescription drug prices will ultimately result in the shortening of American lives. Instead of repeating past mistakes, it’s time we address what’s driving the cost of prescription medications and adopt a regulatory environment that works to everyone’s advantage.”
For full text of the bill, click HERE. For full text of the JEC’s report, click HERE. For a one-pager of the bill, click HERE.