Trump is fighting Bidens drug-price battle but patients will pay the cost

The Trump administration is experiencing some cognitive dissonance: The new president’s Justice Department is going to bat for former President Joe Biden and his signature legislative accomplishment.Senior Justice officials say they’ll head to court to stick up for Biden’s Inflation Reduction Act and its price controls on prescription drugs.Meanwhile, the White House’s top health-care policymakers warn that those very price controls will kill American patients, undermine our economy and ultimately increase government health-care spending.“IRA price negotiations and controls will lead to fewer life-saving drugs coming to market,” cautions Dr.Joel Zinberg, a special assistant to the president at the National Economic Council.Theo Merkel, a special assistant to the president at the Domestic Policy Council, has testified to Congress that under the price controls “everyone agrees that there will be some reduction in future innovation” — and that the economic and human costs of “future disease that does not get cured” will be high.The health wonks are right.

The rest of the Trump administration would be wise to listen — and neuter the Inflation Reduction Act to the greatest extent possible.There are far better ways to make drugs more affordable.The IRA Act gave Medicare the power to set prices for drugs the program covers, starting with 10 medicines under the Part D prescription drug benefit in 2026.Fifteen more under Part D will be hit with price controls in 2027.In 2028, 15 drugs across Part D and Part B, which covers drugs dispensed in-clinic, will be subject to price caps.

And starting in 2029, Medicare will apply price controls to 20 more drugs across both programs each year.The problem with price controls is that they upend the economics of developing new pharmaceuticals: When the government caps the price of a breakthrough medicine, it limits investors’ ability to recoup their costs and make a return.The incentive to invest in drug devel...