Government Fiat

This is what the Progressive-Democrats in charge of our Federal Government are plotting [sic] in the way of drug pricing under Medicare Part D (the drug provision of Medicare), per the Tax Foundation.

Under HR 3 [the Elijah Cummings Lower Drug Costs Now Act], if drug manufacturers do not agree to participate in negotiations, or do not agree to the negotiated price, they would be subject to an escalating excise tax on the sale of the drug in question. The tax would kick in at 65 percent and would rise by 10 percentage points each 90 days the manufacturers are in “noncompliance,” reaching a maximum tax rate of 95%.

What “negotiation?” This is the price we’re negotiating for, says the Health and Human Services Secretary, the Government official that HR3 says will represent the Government.

Here’s our counteroffer, says the drug manufacturer.

No, no, that’s too high, says SecHHS, repeating his original offer. Then he says, Here’s your noncompliance tax.

This isn’t negotiation, yet that’s what will occur, with the Government holding all the cards. Targeted drug manufacturers and sellers would not even be allowed to opt out of Medicare under HR3.

The Tax Foundation is concerned about drug innovation, and rightly so.

I’m also concerned about the fate of free enterprise and of individual freedom.

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