The government may have a role in subsidizing the less-fortunate, but to the degree that it directly, or evenly indirectly, either provides the services itself or seeks to direct prices, inefficiencies and perverse incentives abound. The result is lower standard of health care than patients and taxpayers have a right to expect. The Canadian experiment is failing to deliver on its promises. American decision-makers should heed the lesson of the whole Canadian experience even if they are only examining one part of it, pharmaceutical price controls. They should not assume that they can adopt Canadian-style drug price controls without unleashing the dynamic of growing inefficiencies and public expectations leading to ever greater state control of the health care system.
Bad policy drives out good policy.
The growth of state control of health care in Canada was evolutionary. So, too, might be the Canadianization of American health care. You can contact us at the above email address for any comments or information requests. Please report any dead links or technical problems.