Robert Reich | Hillary's Plan to Crack Down on Runaway Drug Prices Doesn't Go Far Enough

By Robert Reich, Robert Reich Facebook Page

03 September 16

oday Hillary Clinton unveiled a plan to crack down on unwarranted increases in prescription drug prices, such as the steep increase in the cost of the EpiPen (a lifesaving injection device for people with severe allergies) by, among other things, fining drug companies found to have unduly increased prices.

While helpful, this doesn't go to the core of the problem: Proprietary drug companies have excessive market power to charge whatever they want. They maintain their monopolies through cosmetic changes in their drugs that allow them to renew their patents. They pay off generic manufacturers to delay introduction of generic equivalents. They’re allowed to advertise their prescription drugs. They've got laws that bar consumers from buying the drugs more cheaply from Canada. They’ve prevented Medicare from negotiating lower prices. In other words, they’ve used their political clout to increase their monopoly power. Until this is reversed, they’ll continue to charge monopoly prices.

What do you think?