Here’s an idea for controlling drug prices: Restore market forces

Published February 7, 2019 3:59pm ET



Trump administration officials keep searching for solutions to rising prescription drug prices, which are increasing faster than inflation. “Drug makers and companies are not living up to their commitments on pricing. Not being fair to the consumer, or to our Country!” President Trump tweeted on Jan. 5.

Most of the administration’s suggested remedies have been threats or the imposition of various types of price controls. On Thursday, Jan. 31, Department of Health and Human Services Secretary Alex Azar said the department would propose a rule effectively ending the widespread practice of rebates, which the administration calls “hidden kickbacks,” to middlemen, or pharmacy benefit managers.

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