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Does the drug industry have anything to worry about? Won’t any effort to control drug prices get bogged down in a divided and seemingly ever more dysfunctional Congress? Perhaps, but what is probably worrying industry most is rumors that HHS is looking at ways to use its existing regulatory authority to hold down drug prices. If the administration is seriously looking to use its existing authority, it could start by making sure any new trade agreements don’t undermine efforts in the US and internationally to hold down costs. On top of that, there are some ideas in the CAP proposal that could be implemented without legislation. Will the outrage over rising prices turn into serious remedies? It’s too soon to tell, but certainly this is a good time to be pushing.
More on Mergers: When No Is Not Enough
Insurance industry executives have been up on the Hill facing scrutiny over proposed mergers among some of the largest insurance companies in the nation. Unfortunately, the debate over the mergers is missing some essential elements. Would the mergers cause premiums to rise? Both economic theory and the available evidence suggest that the answer is yes. But if the mergers of insurers are blocked, while provider consolidations continue on, then premiums will also go up.