Politicians continually push feel good legislation that will not improve the quality of health care in the U.S., nor decrease its costs. Managing Editor, Wayne Winegarden, applies this insight into the pharmaceutical market in his latest Forbes editorial.
In this case California is considering a bill (SB 17) that creates more government bureaucracy in its vein attempt to control health care costs. Instead of the knee-jerk reaction of more government regulation, the first step in controlling health care costs should be to understand how the market (such as it is) is actually working. With respect to pharmaceuticals, the adverse incentives created by government regulations have led to an inefficient market plagued with complexities and misinformation. Improving health care must, consequently, start by diagnosing and the fixing, these disincentives. You can read the full article here.