Biden Administration Is Using Inflation to Masquerade Their Drug Pricing Schemes

The midterms are less than five months away, and with President Biden’s approval numbers at a historic low, Democrat prospects for holding power in Washington appear dire. Even worse polling numbers afflict the Biden Administration on their handling of the economy, with a dismal 30 percent approval rating, and it is not difficult to understand why.

Americans are feeling the effects of the highest inflation rate in 41 years, impacting their everyday lives and sapping thousands of dollars from their household income. Gas is up almost 60% making it more expensive to go anywhere, especially to the grocery store, where staples like eggs and ground beef are up 33%. There are few areas of our consumer and wholesale economy not impacted by rapacious inflation rates, creating long-term uncertainty across the nation.

The Biden Administration is, of course, aware of all of this and hatching a plan to blunt their electoral disadvantages in November. Yet just as inflation has ravaged household incomes, their politics masquerading as policy will likewise do great damage to consumers.

In an attempt to pose as inflation fighters, the Democrats have embraced a drug-pricing “fix” that will allow them to flood congressional districts this Fall with political advertising proclaiming to be champions for consumers. Masking their flawed price controls plan lets them fight two birds with one stone: 1. It makes it look like they’re actively fighting to improve the economy, and 2. It gives them another way to ram their price control scheme through Congress. What’s missing: any provisions that would actually address inflation.

Democrats are either out of touch with what Americans need or they just don’t care. Take a look at which sectors are experiencing the worst inflation. According to the Bureau of Labor Statistics (BLS), gas and energy have increased 60% and 42%, respectively. Americans feel the weight of this impact every time they go to the gas station or pay their electricity bill. Conversely prescription drug prices have increased only 2.5% in the past year —the smallest sector increase BLS mentioned in their latest inflation report.

Just last week, President Biden claimed that Congress’ price control plan will “reduce the deficit and help inflation.” You don’t have to be an economist to see that the administration is not focusing on what would actually help Americans: addressing the explosive rise in gas, food, and energy prices.

The Left’s latest drug pricing proposal would allow the government to set prices for particular drugs and impose harsh penalties, almost 95%, for drug manufacturers that don’t comply. This would have devastating consequences on our healthcare system, particularly by limiting patient access to new drugs and discouraging research and development into future cures. It would also make the Affordable Care Act (ACA) subsidies permanent.

Ironically, the administration is using drug pricing reform as the poster child for reducing inflation, while all credible data shows it would worsen inflation. First-of-all, making ACA subsidies permanent would increase government spending. Secondly, the government would not see any savings from imposing price controls until 2025. This means that the government would spend another $74 billion on ACA subsidies before it would even recoup any potential savings from the drug pricing provisions. Higher government spending and billions more in debt is the precise recipe for worsening inflation. Democrats’ claims that their drug pricing plans would reverse inflation are not just misleading. They are lies.

It's no secret that Democrats have been trying every potential avenue to shove their price control package through Congress. Inflation is just the latest issue they’re trying to latch onto. The inflation caused by the current Biden Administration has negatively impacted the American population and will not be solved by creating bad drug pricing policies. If the administration really cares about addressing drug prices, they should focus on reforms that improve the lives of all patients while ensuring access to care and preserving innovation.

Gerard Scimeca is an attorney and serves as chairman and co-founder of CASE, Consumer Action for a Strong Economy, a free-market oriented consumer advocacy organization.