The Competitive Solution to Drug Prices Requires Government Action

Lab materials used to create drugs inside the LS Skaggs College of Pharmacy at the University of Utah in Salt Lake City, Utah on Monday, Mar. 27, 2017. (Rishi Deka, Daily Utah Chronicle)Ever the populist, President Donald Trump has made some huge promises to reduce pharmaceutical drug prices. He frequently claims the pharmaceutical industry is “getting away with murder” and charging “astronomical” prices. This commitment is welcome considering the problem many Americans face in paying for their medical treatments. However, Trump’s promise to increase competition through less government involvement is misguided. The current regulatory system makes any sort of competition over drug prices incredibly difficult, and paradoxically it is time for the government to get involved and ensure that there are real markets for prescription drugs.

…