T he federal government came close to wrecking the U.S. health care system in 1994. Only resolute resistance to the Clinton administration's proposal to take over American medicine prevented this country from proceeding down the disastrous path of nationalized care prevalent around the world. Although defeated in his attempt to gulp down the health care system, President Clinton has succeeded in expanding government control one bite at a time. He is now targeting the pharmaceutical industry. Alas, he faces virtually no opposition.
Drugs seem expensive, but the alternatives are more costly.
Pharmaceuticals extend our lives, improve our well-being, and replace more dangerous and pricey treatments, such as heart bypass surgery. The reason drugs seem so expensive is that private insurance and government programs, particularly Medicare, cover a lower percentage of their cost than of other care. A government pharmaceutical program would worsen the problem. First, the costs would inevitably rise far faster than forecast. Second, as costs rise, the pressure for price controls would grow.