https://issuesinsights.com/2023/08/18/bidens-drug-pricing-transparency-rule-is-just-back-door-price-controls/
The Centers for Medicare & Medicaid Services just proposed a rule supposedly designed to improve transparency in Medicaid.
That’s hardly the real objective, however. The proposal is a back-door effort to expand price controls in Medicaid and beyond, a surefire way to derail the next generation of medical breakthroughs.
The CMS rule would require certain drug makers to participate in annual “price verification surveys.” The agency claims the surveys will shed light on why certain drugs are priced the way they are. The kicker is that through this “survey” process, drug companies would have to share proprietary and confidential data with the government.
CMS has offered drug makers an escape route, however — much the way blackmailers and extortionists offer their victims a way out. All a company has to do to excuse itself from these annual audits is agree to set its drug prices at whatever level the government deems fair — or, as an alternative, to hand over larger rebates to Medicaid. It’s an offer they can’t refuse.
Those who don’t play ball and cut prices “voluntarily” can look forward to selective release or leaks of confidential material that activists will pounce on to apply outside pressure on prices.
This is a flagrant abuse of government power. But more worrying still is the harm the rule would do to patients.