Rationing would be the inevitable result of government cost controls. Government price controls would be a health care and economic disaster. Government price controls will stifle research into medicines that may treat illnesses that uniquely harm seniors. If they are not allowed to profit from cures that help seniors, they will have no incentive to research potential medicines. The Clinton plan and others in Congress often claim they have no price controls, but, in fact, if the government is the only organization purchasing medicines for use by seniors, it will have the power to control prices.
Price controls create shortages.
If the government requires a company to sell medicine at a price less than what it costs to produce the product, it may stop producing the product in the future. The price of medicines rose 3 percent in 1999. The reason overall drug spending was big news is simply that people are using more medicines. CSE S Agenda on Medicare and Prescription Drugs Stop a government takeover of prescription drugs. Clinton, Gore, and others in Congress are pushing to have the federal government control seniors access to necessary medicines.