The Seniors Coalition is a free-market advocate: we are against price controls. Price controls eliminate the free market competition and cause shortages. In the past year Medicare Part D’s free market design is what saved seniors an average of $1,100 a year.
The slogan, “when banks compete, you win” holds true where insurance providers are concerned. They are motivated to negotiate with drug companies for the lowest cost possible to keep your business. If you are unhappy with your insurance provider you can choose another; so it is in each company’s best interest to provide the best coverage at the lowest price. If this opportunity is taken away, the government will set what price they see fit, decide what drugs they are willing to provide, and seniors will be stuck without a way out.
A recent HHS study found that Medicare Part D has helped seniors; the average monthly premium is 24- 40% less then originally expected. This is because market competition has driven prices down. During this time the government did not set a price or “negotiate” for the medications. Seniors have benefited from having the government stay out of their medications!
Proponents of government interference point to the Veteran’s Administration (VA), which sets price controls for medicines. What they don’t point out is that the VA’s plan only covers 19% of the drugs approved by the FDA since 2000. Seniors should have access to the most recent and innovative treatments available. Price controls would take choice out of the doctor’s hands and put it into the hands of big government. Choices of treatment should be left up to patients and doctors.
When price controls are enacted in any industry, shortages and price increases occur. Consider what happened when President Carter put price controls on gas. We had a gas crisis. Seniors can not afford to have a “drug crisis.”
The Seniors Coalition works hard to prevent such price controls from being enacted, and will continue to work hard to protect the choices America’s seniors now have.
As Grandma Green likes to say, “Getting government involved is generally the most effective way to lower efficiency and increase customer dissatisfaction. It is also the best way to eliminate our freedom of choice. I want to see solutions that respect the principles of free-market.”
Representative Nancy Pelosi has stated that in her first 100 hours as Speaker of the House, she will enact government price controls on prescription drugs for seniors. Click here to send a letter to your Representative and your Senators, telling them to stop passage of this harmful legislation.
