Even as Democrats attempt to revive their stalled reconciliation legislation to impose prescription drug price controls, another group within the health care sector has come forward with a better solution. Their proposal, which would use competition to bring down prices, has the potential to benefit consumers — with fewer side effects than blunt government force.

A consortium of hospitals recently announced plans to build a factory that can manufacture insulin within two years. Once their plant gets up and running, the non-profit consortium said it would sell the insulin at a cost of $30 a vial — a fraction of what pharmaceutical companies currently charge. //

The Biden administration has its “solution” to the problem of high drug prices: Government-imposed price controls. Its proposal, incorporated as part of the $5 trillion spending spree being considered by Congress, would allow the federal government to “negotiate” (i.e., dictate) the prices of certain drugs. Companies who refuse to “negotiate” would be penalized with a 95 percent tax — a penalty so onerous that some companies could stop selling their drugs in the United States entirely. //

Price controls also would create other harmful effects on innovation. The Congressional Budget Office concluded that one version of Democrats’ price control legislation would result in approximately 60 fewer drugs during the first three decades following its enactment. Other estimates have suggested as many as 100 fewer drugs within the course of the first decade alone. In either case, these price controls would mean diseases not treated, and potentially lives not saved.