Just wondering if as a tutor you agree or disagree with this... Price controls are government-mandated minimum or maximum prices that are set for certain goods and services. Currently, the government is intervening in drug price controls. According to New York Times, the Biden administration is advocating to limit prices for prescription drugs, calling the government to negotiate with drug makers on prices and applying those prices to both Medicare and all drug purchasers in the country. The house passed a bill that would establish price limits for certain drugs based on what other countries pay. Some parties are not likely to benefit from this. Steve Ubl, the C.E.O. of the industry trade group PhRMA stated, "major across-the-board price reductions would result in reduced revenues for drug companies, and could hurt companies’ ability to spend on research as well as cause smaller companies to close if investors leave the sector" (Katz, 2021). Some democratic lawmakers have concerns that price restrictions could prevent innovation and hinder future drug development. On the other hand, "lower drug prices—even without additional reforms—would result in lower Part D premiums and cost-sharing" (Center for American Progress). This would allow seniors to have lower out-of-pocket costs for prescription drugs and people living with diabetes would have access to affordable insulin. Although I feel that medication prices in the U.S are outrageously high and price negations would essentially help a lot of people, this is a take and give scenario. If they put a price ceiling on medication prices, down the road they will have to compensate for the price controls. Whether they reduce the budget for drug company research or increasing insurance, someone is losing in the end. I feel like we should really just leave it alone until we find a more beneficial plan that helps everyone someway.
Just wondering if as a tutor you agree or disagree with this...
Price controls are government-mandated minimum or maximum prices that are set for certain goods and services. Currently, the government is intervening in drug price controls. According to New York Times, the Biden administration is advocating to limit prices for prescription drugs, calling the government to negotiate with drug makers on prices and applying those prices to both Medicare and all drug purchasers in the country. The house passed a bill that would establish price limits for certain drugs based on what other countries pay. Some parties are not likely to benefit from this. Steve Ubl, the C.E.O. of the industry trade group PhRMA stated, "major across-the-board price reductions would result in reduced revenues for drug companies, and could hurt companies’ ability to spend on research as well as cause smaller companies to close if investors leave the sector" (Katz, 2021). Some democratic lawmakers have concerns that price restrictions could prevent innovation and hinder future drug development. On the other hand, "lower drug prices—even without additional reforms—would result in lower Part D premiums and cost-sharing" (Center for American Progress). This would allow seniors to have lower out-of-pocket costs for prescription drugs and people living with diabetes would have access to affordable insulin. Although I feel that medication prices in the U.S are outrageously high and price negations would essentially help a lot of people, this is a take and give scenario. If they put a
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