Democrats have sent the legislative text of a sweeping proposal for drug price controls to the U.S. Senate parliamentarian, who may report on Monday whether the provisions qualify for the budget reconciliation process that allows lawmakers to evade a filibuster and pass a bill with a simple majority. Democrats expect the various drug-related provisions to reduce federal spending by roughly $300 billion over a decade.
That’s a hard number to resist. But the proposal would have other monumental and decidedly harmful implications for American society. There is simply no way for government fiat to force down costs without harming innovation, especially at the startups and small biotechs fueled by venture capital (VC).
All price control schemes have two inescapable and competing effects:
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