Did Landmark Laws From Congress Enable High Drug Prices?

In the last 13 years, Congress passed major legislation that expanded taxpayer-financed coverage for prescription drugs but lacked explicit mechanisms for dealing with costs, instead relying mainly on market forces. "Congress in attempting to expand access to prescription drugs has inadvertently created a situation where price increases are much more rapid," said economist Paul Ginsburg, a former congressional adviser on Medicare who now directs the Brookings Institution health policy center. Government-sponsored coverage injected more dollars into the market for medications, and new consumer protections curtailed some blunt instruments insurers used to control costs, such as annual and lifetime limits on the dollar value of coverage. Congressional indignation was on display recently as House members grilled Mylan CEO Heather Bresch about price increases for her company's EpiPens, prefilled syringes that deliver a rescue drug for people suffering life-threatening allergic reactions. —Obama's health care law provided makers of cutting-edge biologic drugs 12 years of protection from generic competitors, not a shorter period sought by consumer advocates. A Kaiser Family Foundation poll released Thursday shows strong support for requiring drug companies to disclose how they set prices (86 percent), Medicare negotiations (82 percent), price limits on costly drugs to treat cancer and diseases like hepatitis (78 percent), and allowing Americans to import medications from Canada (71 percent).

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