Price Controls Won't Make America Healthy
President Trump signed an executive order Monday establishing a 'most-favored nation' policy, which will effectively impose price controls on certain pharmaceutical products covered by Medicaid and Medicare. This policy emulates the Biden administration's Inflation Reduction Act, which forces pharmaceutical companies to negotiate with the federal government on the prices of medications covered by Medicare—with the government holding all the leverage.
Such policies are a reaction to Americans outraged over paying higher prices for pharmaceutical products—including American-made ones—than European countries, most of which impose price controls. As Mr. Trump said last week, the U.S. is being 'ripped off compared to the rest of the world.'
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