Prescription drug pricing reform extends price controls to the pharmaceutical industry. Prescription drug reform legislation before Congress does not impose price controls on the pharmaceutical industry, but instead ends price discrimination.
Companies can set their best price at whatever level they want.
Prescription drug pricing reform will reduce pharmaceutical research. The fact is, profits greatly exceed research costs at the top ten U.S. drug companies. Savings realized by pharmacists and wholesalers will not be passed along to consumers. Community pharmacies generally have modest gross margins and low profits. In addition, their customers who do not have insurance coverage for prescription drugs are extremely price sensitive and will take their business elsewhere if the lower prices are not passed on.