State of the Union Address 2022: Capping prices of diabetes vials

Joe Biden in his State of the Union Address (2022) said he wants to lower inflation:

One way to fight inflation is to drive down wages and make Americans poorer.  
I have a better plan to fight inflation. 
Lower your costs, not your wages. 
Make more cars and semiconductors in America. 
More infrastructure and innovation in America. 
More goods moving faster and cheaper in America. 
More jobs where you can earn a good living in America. 
And instead of relying on foreign supply chains, let’s make it in America. 
Economists call it “increasing the productive capacity of our economy.” 
I call it building a better America. 
My plan to fight inflation will lower your costs and lower the deficit. 

What is the plan? Let’s look at the first one:

17 Nobel laureates in economics say my plan will ease long-term inflationary pressures. Top business leaders and most Americans support my plan. And here’s the plan: 

First – cut the cost of prescription drugs. Just look at insulin. One in ten Americans has diabetes. In Virginia, I met a 13-year-old boy named Joshua Davis.   He and his Dad both have Type 1 diabetes, which means they need insulin every day. Insulin costs about $10 a vial to make.  

But drug companies charge families like Joshua and his Dad up to 30 times more. I spoke with Joshua’s mom. 

Imagine what it’s like to look at your child who needs insulin and have no idea how you’re going to pay for it.   What it does to your dignity, your ability to look your child in the eye, to be the parent you expect to be.  Joshua is here with us tonight. Yesterday was his birthday. Happy birthday, buddy.  

For Joshua, and for the 200,000 other young people with Type 1 diabetes, let’s cap the cost of insulin at $35 a month so everyone can afford it.  

Drug companies will still do very well. And while we’re at it let Medicare negotiate lower prices for prescription drugs, like the VA already does. 

Not sure which Nobel Prize laureate suggested capping of price of insulin vial. We have seen several policies imposing price caps but the end result is usually the opposite: prices for most people are higher than the capped price! Even worse is that people who pay higher prices are the ones with lower income and those who need it the most.

Will be surprised if the experience with this new cap will be any different ..

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.


%d bloggers like this: