Democrats' Stumble on Drug Prices Shows Power of Industry

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The United States pays higher prices for prescription drugs than any of its peers — about 250% of the price paid on average by other Organization for Economic Cooperation and Development countries, according to a recent report from the Rand Corp.

A Democratic plan to reduce drug prices stalled on Wednesday in the House Energy and Commerce Committee. House Democrats writing the health provisions of their big social spending bill aimed high: new coverage for poor Americans without insurance; extra subsidies for people who buy their own coverage; and new dental, hearing and vision benefits for older Americans through Medicare.

The dynamic is familiar to lawmakers who have worked on health issues: Health industries are large and powerful lobbies, and they do not enjoy having their revenues cut. As with measures that might reduce payments to hospitals, doctors and insurance companies, the House’s attempt to take a bite out of drug companies has generated a backlash.

And those high costs ripple through the federal budget and the economy, increasing insurance premiums and putting lifesaving medications out of reach for some patients.

 

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It’s not “power” of the industry but the corruption of lawmakers that is on display.

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