Last month, Sen. Bernie Sanders led a Senate hearing targeting Novo Nordisk for the pricing of its weight loss drugs Ozempic and Wegovy. Sanders claimed the hearing was about addressing drug prices, but let’s be honest — it was a spectacle aimed at distracting seniors from the real issue: rising healthcare costs caused by government mismanagement.
We’ve seen this kind of show before. Politicians love to single out pharmaceutical companies as the villains in the healthcare crisis. What they don’t tell you is that their policies are the primary reason Americans pay so much for prescription drugs.
With its endless mandates and regulations, the government’s interference has distorted the market, killed competition and drove up costs. It’s not that the free market doesn’t work; the government has sabotaged it.
Drug development costs are high in the United States because of the complex regulatory environment. The government adds layer upon layer of rules that make it expensive for companies to bring treatments to market. Meanwhile, pharmacy benefit managers (PBMs), the middlemen in the system, control which drugs get covered and at what price, often inflating costs even further. The Democrats could focus on these systemic issues but prefer flashy hearings and misleading attacks instead.
A significant factor driving up the cost of drugs like Ozempic isn’t the pharmaceutical companies but the PBMs that operate behind the scenes. These entities control the drug formularies (lists of approved medications) and negotiate rebates, but the savings from these rebates rarely reach consumers. Instead, they pad the pockets of big insurance companies and their PBM affiliates.
Democrats are quick to talk about price parity with other countries, but they refuse to address the power PBMs hold. They ignore how these middlemen manipulate drug prices to their advantage, taking a cut of the profits while consumers face higher out-of-pocket costs. If the government were serious about lowering prices, it would break up these PBM-insurer cartels instead of allowing them to control the market.
Politicians claim the Inflation Reduction Act (IRA) will lower drug prices, but the reality is different. The IRA has done nothing to reduce costs for patients. Instead, it has led to higher Medicare premiums and out-of-pocket expenses. It’s no surprise — this legislation was never really about healthcare. It was a scheme to siphon money from Medicare to fund unrelated projects.
The IRA’s “price negotiations” aren’t about saving seniors money; they’re about saving the government money. The bill cuts Medicare spending by more than $260 billion, but none of that money is reinvested into healthcare. Instead, it’s funneled into the general budget to support $670 billion in spending on environmental programs and tax credits for electric vehicles. The Democrats’ priorities are clear: they’re more interested in appeasing special interests than ensuring affordable healthcare for seniors.
When the government manipulates drug prices, it discourages pharmaceutical companies from investing in treatments. The IRA’s policies threaten to undermine the innovation that keeps America at the forefront of medical breakthroughs. If the government continues on this path, the United States could lose its status as a leader in pharmaceutical development, and jobs, capital, and R&D will flow to countries like China and India.
Novo Nordisk, for instance, has been demonized by Sanders despite being a company that has brought critical weight loss treatments to market. It’s important to remember that Novo Nordisk’s largest shareholder is a charitable foundation — hardly the greedy corporation Sanders portrays. The company is navigating a complex and broken U.S. healthcare system that misguided government policies have made worse.
It’s ironic that, as politicians attack companies like Novo Nordisk, the obesity crisis continues to escalate. In 2012, no state had an obesity rate above 35 percent. Today, 23 states surpass that mark. Obesity isn’t a personal health issue; it’s a national security concern. In 2023, more than 52,000 potential military recruits were disqualified because of their weight. The military is even relaxing its fitness standards to maintain readiness.
Rather than blame the companies developing solutions to this crisis, Congress should focus on fixing the systemic issues that prevent these solutions from reaching people at affordable prices. America needs companies like Novo Nordisk to innovate, not political witch hunts that discourage the development of life-saving drugs.
Instead of hosting more political stunts, Congress should focus on real solutions to make healthcare affordable. This means reforming the PBM system, restoring the rebate rule for Medicare, and avoiding price controls that stifle innovation.
—Break up PBMs: PBMs have too much power over pricing and formularies. Breaking up their monopoly is essential to restoring competition and reducing prices.
—Restore the Trump-era Rebate Rule: Ensuring rebates go directly to patients rather than insurers and PBMs will lower costs for seniors.
—Avoid price controls: History shows that price controls lead to shortages and reduced innovation. We need policies that encourage, not discourage, pharmaceutical development.
It’s time to quit playing politics with people’s health and start addressing the real causes of high drug prices. Until they do, expect more hearings, distractions and higher costs for all Americans.
