Medical Overhaul Prompts Drug Price Hikes
“Even as drug makers promise to support Washington’s health care overhaul by shaving $8 billion a year off the nation’s drug costs after the legislation takes effect, the industry has been raising its prices at the fastest rate in years…. Drug makers say they have valid business reasons for the price increases. Critics say the industry is trying to establish a higher price base before Congress passes legislation that tries to curb drug spending in coming years.” (New York Times, Monday)
Government can control prices but not costs.
FEE Timely Classic
“Price Controls and Shortages” by George Reisman
