The Center for Innovation and Free Enterprise (CIFE) opposes the “reasonable pricing” amendment proposed by Senator Sanders to the Pandemic and All Hazards Preparedness Act (PAHPA). While CIFE acknowledges the importance of addressing public health concerns and ensuring access to essential medical care and supplies during emergencies, we firmly believe that imposing price controls is not a solution.
Price controls have been proven to stifle innovation, reduce incentives for private investment, and hinder the development of life-saving treatments and medical advancements. History has shown us that when governments intervene in market pricing mechanisms, it disrupts the delicate balance between supply and demand, leading to consequences that can be detrimental to both patients and producers.
The healthcare and pharmaceutical industries are driven by innovation and the pursuit of new discoveries, often requiring significant financial investment in research and development. Introducing price controls undermines the ability of these industries to invest in cutting-edge technologies and groundbreaking therapies that could ultimately save lives and improve public health outcomes.
CIFE believes that promoting free enterprise and competition in the healthcare sector is the most effective way to drive down costs and ensure access to affordable medical treatments for all Americans. Therefore, rather than imposing restrictive price controls, we hope lawmakers will consider market-based solutions that encourage competition and foster innovation while maintaining access to essential medicines and supplies during emergencies.