PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Price Controls, Intrusive Government Mandates Won’t Work: SBE Council Responds to President Biden’s Prescription Drug Plan

By at 12 August, 2021, 3:07 pm

NEWS

For Immediate Release

Washington, D.C. – Today, President Joe Biden announced policy steps that aim to lower prescription drug costs. Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan issued the following statement in response to the President’s proposal:

“There’s a reason why the United States leads the world in medical breakthroughs and life-saving drug innovations – like the speed at which COVID-19 vaccines were developed. Our policy environment is generally favorable to investment and risk-taking, unlike much of the world which has embraced price controls and restrictive regulation. Like all Americans, small business owners want lower prescription drugs costs, but imposing price controls or ‘importing’ them by allowing drug importation – or adding to the cost of research and development through government penalties – will only serve to undermine investment, innovation, and access to life saving drugs.

“Given the high costs, enormous risks and vast uncertainty of working to create life-saving and life-enhancing prescription drugs and vaccines, price controls are exactly the wrong approach and will discourage entrepreneurship, investment and innovation. It must be remembered that the pharmaceutical manufacturing sector is overwhelmingly dominated by small businesses. According to the latest U.S. Census Bureau data, 78.7% of these firms have fewer than 100 employees, 58% have fewer than 50 employees, and 46.1% have fewer than 10 employees. These firms are the most sensitive to regulation and intrusive government policies. Government price controls – one of the most intrusive government policies by far – would lead to consolidation, fewer firms, and fewer innovations.

“A recent SBE Council survey found that small business owners believe the private sector and the market – not government – are best able to keep up with the innovative choices, methods and breakthroughs in health care that are needed during this uncertain period of time. They support transparency across the health care system, more competition, and affordable choices. They are least supportive of allowing the federal government to determine the price of prescription drugs or which prescription drugs are covered in Medicare, among all of the potential policies for lawmakers to address healthcare costs.

“These small business owners understand that price controls and intrusive government mandates will mean less investment, less innovation, and higher costs. SBE Council will continue to work with President Biden and his team on policies and solutions that will help small business owners and their employees remain healthy and productive. Price controls, intrusive government mandates, and penalizing innovation won’t work toward that end.”

Related Content:

“Government Does Not Know Best When it Comes to Health Care,” Washington Times Op-ed, July 27, 2021, by SBE Council president & CEO Karen Kerrigan.

Letter to Congress on Health Care Policy: What Do Small Business Owners Want?, July 1, 2021.

Comments to the Food and Drug Administration: “Importation of Prescription Drugs,” March 9, 2020, submitted by SBE Council president & CEO Karen Kerrigan.

Price Controls vs. Pandemic Vaccines, Small Business Insider blog post, November 16, 2020, by Raymond Keating.

How Vaccines Are Saving Small Business, International Business Times, April 4, 2021, by SBE Council president & CEO Karen Kerrigan.

 

CONTACT:

Karen Kerrigan, kkerrigan@sbecouncil.org

Raymond Keating, rkeating@sbecouncil.org

SBE Council is nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For 25 years, SBE Council has worked on and advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth. Visit www.sbecouncil.org for additional information. Twitter: @SBECouncil

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